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As one example, consider digitized merchandise that you might sell away from your Canadian website, such as e-books, downloadable software, or subscriptions to content. You'd be considered with regard to selling "intangible personal property". Unless goods is timber "intellectual property" (such as software or e-books in order to produced or have obtained the rights for), you will need to charge F.S.T. The reason why, according to the Canada Revenue Agency, is that it COULD be utilized inside Canada, even this isn't.
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In Canada, exports are "zero-rated" sales for R.S.T. purposes. This means that after you ship merchandise to someone outside Canada, you don't charge .S.T. Yet, you get to claim (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, through using encourage transferring.
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