Ok, I don't know if this set of recommandation has been approved by the government or not, but if these are the rules concerning electronic commerce and that they must be applied by the GST board, there is something very interesting at the end of page 62-beginning of page 63. From what I have read in the pages before that, the comittee considers the type of product we deliver an Intangible Personnal Property, but I cannot seem to find if we get in the category "Intellectual Property" or not. This is a major difference, since if our product is considered to be an "Intangible Personnal Property that is Intellectual Property", we should be able to have terms and conditions in the contract that prohibit the use of our product in Canada, and therefore we would not have to charge taxes to "non-resident and non-registered". We would have to charge taxes to all those that are residents, registered or have permanent establishment, but that means a small percentage of the overall number of customers.
However, if our product is considered to be an Intangible Personnal Property that is not Intellectual Property, we are required to charge taxes to everyone because of that argument:
"As there are no restrictions on the place of use of the intangible personnal property, the supply is made in Canada. The supplier is reuiqred to collect tax. Since this is a supply of intabgible personnal property other than intellectual property the supply is not eligible for zero-rating."
I am going to try and find if our product is considered to be of intellectual property. That would make a huge difference.
Of course, that only applies if those recommandations are now effective.