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In Canada, exports are “zero-rated” sales for Grams.S.T. purposes. This means that when you ship a product to someone outside Canada, you don’t charge G.S.T. Yet, you get declare (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 foreign trade. The idea, I suppose, is to encourage conveying.
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As a Canadian registrant, one way you might legally avoid this silly March Hare is to explicitly state on objective and invoice that use of 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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