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Say you sold a regular membership for accessing digitized content (from various sources) on your Canadian website to a customer in the united states. Since there are no restrictions relating to where the intangible personal property possibly be used, as well as the property is not considered intellectual property (nor the provision of a service), the American customer is at the mercy of G.S.T., regardless if he never comes to Canada.
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Tip: Look up narrowly defined niche markets where your merchandise solves a unique need of your customers. Focus your marketing on them instead of trying to reach a broadly defined general market. You’ll generate more sales and view a better return regarding your advertising expense.
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As one example, consider digitized products you might sell because of your Canadian website, such as e-books, downloadable software, or subscriptions to content. You would be considered to selling “intangible personal property”. Unless your products is organic “intellectual property” (such as software or e-books in order to produced or have obtained the rights for), on the way to charge G.S.T. Motive for why, in line with the Canada Revenue Agency, is that it COULD double inside Canada, even this isn’t.
When facing several options, most customers have difficulty making a clean decision. They often react by procrastinating – and never making a determination. When this happens, you lose sales you already had.
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