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In trying to comply with tax laws for your e-business, you should find yourself falling over the rabbit-hole, going through the looking glass, go to a Mad Tea-Party.

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Say you sold a subscription for accessing digitized content (from various sources) on your Canadian website to a customer in united states of america. Since there are no restrictions to where the intangible personal property end up being used, along with the property is not considered intellectual property (nor the provision of a service), the American customer is cause to undergo G.S.T., although he never comes to Canada.

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The rationale behind this follows: Since countries can't collect florida sales tax on Internet transactions at their borders, the best way they can collect it (other rather than a self-assessment system) is through having an online florida sales tax. Further, it is claimed that businesses in the eu Union suffer a major competitive disadvantage because offer to collect Value Added Tax (VAT) but others don't.
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