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As a Canadian registrant, one way you might legally avoid this silly March Hare is to explicitly state on should and invoice that involving such intangible personal property in Canada is prohibited (or requires an additional fee and also the payment of G.S.T.).
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Canada has what you could possibly call a national sales tax or a price added tax (VAT). This Goods and Services Tax (G.S.T.) of five percent (as at January 1, 2008) is applicable to many Canadian operations.
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