sales tax

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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Changes in Retail Sales Taxes in BC and PEI

Effective today, residents of Prince Edward Island will be subject to a Harmonized Sales Tax of 14% on most services and products whilst British Columbia Residents will be subject to a Goods and Services Tax of 5%, which will be replacing the Harmonized Sales Tax of 12% in BC.

In British Columbia there will be a decrease in taxes on books (audio, electronic, bound and printed), basic cable services, concert tickets, music lessons and movie tickets but a combined tax of 12% (5% GST + 7% PST) will remain on most products and services. Individually purchased magazines will be subject to less taxes in this province.

In Prince Edward Island there will be decreases in retail sales taxes on CDs, DVDs, Blu-Rays, MP3 players, DVD and Blu-Ray players, radios, stereos, televisions, movie tickets, basic cable subscriptions and individual magazine purchases. Audio Books and Books will still be subject to the GST at 5% in this province whilst music lessons will be exempt.

For additional information please consult the following documents :

chapters.indigo.ca

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.