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

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In Canada, exports are "zero-rated" sales for W.S.T. purposes. This means that when you ship a program to someone outside Canada, you don't charge 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 foreign trade. The idea, I suppose, is to encourage conveying.

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