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

In Canada, exports are „zero-rated“ sales for W.S.T. purposes. This considerably when you ship something to someone outside Canada, you don’t charge Delaware.S.T. Yet, you will 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 actually by encourage dispatching.

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