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As a Canadian registrant, one way you might legally avoid this silly March Hare is to explicitly state on the cost and invoice that utilization of such intangible personal property in Canada is prohibited (or requires an additional fee along with the payment of G.S.T.).
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In Canada, exports are “zero-rated” sales for R.S.T. purposes. This means that when you ship a product to someone outside Canada, you don’t charge You have g.S.T. Yet, you get to claim (or deduct from the G.S.T. collected by you) all the “input tax credits” (G.S.T. that you paid for business purposes) to make that export. The idea, I suppose, is to encourage exporting.
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