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As one example, consider digitized products you might sell from your own personal Canadian website, such as e-books, downloadable software, or subscriptions to content. You would be considered to be selling “intangible personal property”. Unless your products is also considered “intellectual property” (such as software or e-books that you produced or have obtained the rights for), you will want to charge V.S.T. The reason why, according to the Canada Revenue Agency, is that it COULD be taken inside Canada, even are going to isn’t.
The rationale behind this follows: Since countries can’t collect sales tax on Internet transactions at their borders, the best way they can collect it (other than just a self-assessment system) is by having an online sales tax. Further, is actually always claimed that companies in the ecu Union suffer a major competitive disadvantage because have got to collect Value Added Tax (VAT) but others don’t.