Streaming Taxes In Quebec

It appears that streaming services like Netflix might be subject to provincial sales taxes in Quebec soon.

Quebec Finance Minister Carlos Leitao said this could be a possibility soon, depending on the details of the $500 million Canadian Content deal the federal government has worked out with Netflix.

Some download and streaming services are already subject to provincial or harmonized sales taxes, like iTunes, Apple Music and other services that are based in Quebec or in Canada.

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HST in Quebec

Quebec residents will know if they will be subjected to a provincially collected Harmonized Sales Tax by the end of the month.

The federal government has already set aside $2.2 billion dollars to compensate the provincial government of Quebec and is still in negotiations with Quebec in regards to what will and will not be subject to this tax.

Books and baby cribs, for example, are not subject to the provincial sales tax in the province of Quebec. And consumers are concerned that because GST is charged on those items that these products may be subject to the combined 13% Harmonized Sales Tax.

Interesting Move by Quebec Government

Appearently it is the Quebecan provincial government’s opinion that the recession can be counteracted by higher sales taxes.

Today the provincial sales taxes in Quebec went up 1% to 8.5%. And another 1% hike is scheduled on New Years Day 2012.

I guess they got this brilliant idea from the provincial governments of Ontario, BC and Nova Scotia, who all hiked and/or extended their taxes in July.

In my opinion these additional taxes hinder our recovery.

They burden smaller retailers, who will probably consider this the last nail in their coffin, and force larger retailers to cut expendatures and staff.

It is obviously counterproductive.