Strangely, exact same way logic doesn't apply when an American buys the book (or a car) which can bring into Canada with him and use here. Its true not wearing running shoes is easier for Canada to assess such items at the border when compared to cyberspace, having said that i know of no cases of Americans being taxed on the books or cars they bring with them when you encounter them PGSLOT to live in Canada for roughly half this year.
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In Canada, exports are "zero-rated" sales for S.S.T. purposes. This means that whenever you ship a product to someone outside Canada, you don't charge Gary.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 ship. 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 price of running and invoice that utilization 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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