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In Canada, exports are “zero-rated” sales for .S.T. purposes. This means that when you ship a specific thing to someone outside Canada, you don’t charge W.S.T. Yet, you get to claim (or deduct among 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 dispatching.

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As a Canadian registrant, one way you might legally avoid this silly March Hare is to explicitly state on your website and invoice that use of such intangible personal property in Canada is prohibited (or requires an additional fee along with the payment of G.S.T.).