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Canada has what sometimes call a national sales tax or a price added tax (VAT). This Goods and Services Tax (G.S.T.) of five percent (as at January 1, 2008) is applicable to many Canadian orders.
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Not only is it critical to determine whether a taxable sale was created in Canada or not, however where in Canada. Whether it was made (or deemed to be made) any kind of of the Harmonized Sales tax (H.S.T.) provinces (Nova Scotia, New Brunswick, and Newfoundland and Labrador), a higher, thirteen percent H.S.T. rate applies (as at January 1, 2008). This is mainly because those provinces have allowed Canada to get together their provincial sales taxes for the group.
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As one example, consider digitized that you might sell because of your Canadian website, such as e-books, downloadable software, or subscriptions to content. You'd be considered to be selling "intangible personal property". Unless your product is additionally "intellectual property" (such as software or e-books a person produced or have obtained the rights for), you will have to charge S.S.T. The reason why, according to the Canada Revenue Agency, is it COULD be used inside Canada, even if it isn't.