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In Canada, exports are “zero-rated” sales for G.S.T. causes. This means that when you ship a product to someone outside Canada, you don’t charge T.S.T. Yet, you get to claim (or deduct from the G.S.T. collected by you) all the “input tax credits” (G.S.T. that you paid for business purposes) to make that move. The idea, I suppose, is actually encourage forwarding.
As a Canadian registrant, one way you might legally avoid this silly March Hare is to explicitly state on your internet site and invoice that associated with such intangible personal property in Canada is prohibited (or requires an additional fee and the payment of G.S.T.).
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