In trying to comply with tax laws for your e-business, you could find yourself falling on the rabbit-hole, going using the looking glass, and attending a Mad Tea-Party.
After all it’s remarkable facts about people selling (or recommending) products they use to very network of friends and acquaintances. People who Trust them.
Say you sold a membership for accessing digitized content (from various sources) at your Canadian a website to a customer in the nation TRAVEL MONKE . Since you can apply no restrictions as to where the intangible personal property end up being used, as well as the property is not considered intellectual property (nor the provision of a service), the American customer is be more responsive to G.S.T., although he never comes to Canada.
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The rationale behind this follows: Since countries can’t collect sales tax on Internet transactions at their borders, the very best they can collect it (other than just a self-assessment system) is with an online sales tax. Further, it is claimed that businesses in europe suffer a major competitive disadvantage because need to be collect Value added tax (VAT) but others do not ever.