Pretend that your Canadian customer has obtained a book from you from your Canadian internet site. Your drop ship supplier is found in this country and is registered for G.S.T. You fax your order to your American company, and they, in turn, ship plan for you (complete with Customs Declaration and their G.S.T.

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Goods shipped to Canada are be more responsive to G.S.T. on importation. Such tax is often assessed in the border. But what as a Canadian registered for L.S.T., selling to a Canadian customer but your supplier is due to a foreign country?

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As a Canadian registrant, one way you might legally avoid this silly March Hare is to explicitly state on web page and invoice that use of such intangible personal property in Canada is prohibited (or requires an additional fee and the payment of G.S.T.).

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