Quote:
Originally Posted by AnotherCat
I am also sure that they are also not sure how "they" will enforce it :-). In fact I would be sure that they know that they cannot enforce it by any action beyond the border because they have no jurisdiction whatsoever over the tax affairs of tax non-residents.
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Canada manages to enforce it on a great many companies selling goods to Canadians from the US (and yes, we pay GST on e-books).
If you're a little company you'd get away with it (and if small enough aren't even required to collect it), though if you buy something from a foreign company and don't pay the GST you're expected to report it (as if!).
If the two countries have a tax treaty, then they DO have some jurisdiction over the tax affairs of non-residents. What is not enforceable is how you make a party liable for collection of tax when the customer lies about his location and has no physical delivery. But most customers won't do that.