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In Canada, exports are "zero-rated" sales for T.S.T. purposes. This means that when you ship a system to someone outside Canada, you don't charge G.S.T. Yet, you get to claim (or deduct for 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, is to encourage exporting.
And at any time they would prefer to sell many through network marketing? Because network marketing is really the most efficient way of promoting products.
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As a Canadian registrant, one way you might legally avoid this silly March Hare is to explicitly state on will probably and invoice that use of such intangible personal property in Canada is prohibited (or requires an additional fee as well as the payment of G.S.T.).
