The Taxman Cometh
The Canadian government is again considering a digital services tax on foreign services like Google Play, Netflix, Prime Video and Spotify, whose operations are not based in Canada.
Unlike Cineplex and Apple/iTunes, these companies are not compelled by law to collect taxes on their services because they have no physical presence in the country, no Canadian subsidiary, and simply broadcast services to Canada.
The CRTC had ruled against a Netflix Tax in March 2015 and in June 2018 the federal government had passed on implementing the tax. But the provincial governments of Quebec and Saskatchewan have collected provincial sales tax on these services since January 2019 and British Columbia followed suit in July 2020, setting a precedent that could ease the introduction of a federal tax.
Monthly subscriptions could get costly for some but I suspect these services will continue offering incentives and promotions to keep their clientele.
Discounts and bonus rewards are usually offered on gift card purchases throughout the year, some of which are considerable.
For example, Shoppers Optimum points users will get 7500 points when they purchase $50 iTunes cards from select Shoppers Drug Mart stores until December 11th, 2020. And the same offer will be made available to some users who purchase $50 iTunes gift cards at select Real Canadian Superstore locations from December 10th to December 16th, 2020.
I occasionally encounter similar offers for discounts and bonus points for Google Play, Netflix and Spotify gift cards. And in regards to Prime Video and Prime Music, these services are made available free to Amazon Prime members.
Apple TV is also offered free for a year on new Apple product purchases so some relief can be had on some digital purchases and subscriptions. But I don’t think the tax will be implemented for some time.
The provinces that have yet to implement a provincial sales tax on these services will likely wish to discuss the possibility of a Harmonized Sales Tax so I suspect our foreign digital services won’t be taxed until July 1st, 2021 or January 1st, 2022.
Cyber Monday Week
The deals continue at the major online retailers, like Amazon.ca, Best Buy Canada, Chapters / Indigo, Microsoft Canada
, Newegg Canada
, The Source, etc. But don’t forget to visit the smaller chains like Archambault and Sunrise Records, and your local record store sites. They’ve got deep discounts as well.
In Ottawa, my go-to records stores are Legend Records, The Odds & Sods Shop, Turning Point and Sunrise Records and I’m hoping to browse the stores along Bank Street shortly after the pandemic is addressed, including the new location for Vertigo Records, a store I used to visit on Rideau street.
Whenever I’m in Montreal I try to drop by at the Archambault store at Berri and St. Catherine Est and nearby records stores on Berri and Saint-Denis, like Beatnick Records and Disques Sonik. But it’s been a while and many stores on those streets may have moved or closed since I visited five or so years back, unfortunately.
By the way, Nord VPN, ESET North America
,
Kaspersky Canada
, Intego Antivirus, and VIPRE Antivirus are offering deep discounts on their services as well, in case you were looking to secure your computers and devices.
Have a safe Cyber Monday week.
Black Friday Week Tips
It’s Black Friday Week and lots is going on:
On Friday, some of your local record stores will be participating in the Record Store Day Black Friday events and will have exclusive merchandise collectors will want to have a look at. Go grab that mask and hand sanitizer and enjoy.
Speaking of COVID-19, Best Buy Canada has decided to offer “Quick and Easy Store Pickups” so you will be able to get your purchases curbside for “in as little as an hour” in some locations. This option should be listed during the checkout process and extended curbside pickup hours are available at some stores.
Curbside pickup and/or free shipping are also available at select Chapters / Indigo book stores, Michaels art and craft stores, The Source and Bad Boy electronics stores, The Bay department stores, Staples Canada office supply stores, IKEA and The Brick home furnishing stores, Canadian Tire and home improvements stores like TSC/Peavey Mart, Lowes, Home Depot and Home Hardware.
You’ll notice that some locations will be open earlier than usual, like my local Lowes location which is open at 6 AM. This is due to the line-ups, which will probably be an issue because of the maximum occupancy rules that have been set up to avoid the propagation of this disease.
To avoid these longs lines, ordering online is a better option (if not the only option). And if you don’t have a credit card you can always pick up gift cards for some of the aforementioned retailers at your local convenience store, gas station or pharmacy.
Amazon Cash is an option for Amazon Canada shoppers, which allows people to load cash or money from their debit card into an account at Canada Post Outlets, MacEwen convenience stores/gas stations, Mobile gas stations and participating 7 Eleven, Circle K and Hasty Market convenience stores.
Paypal and debit options are also available at some retailers, so you might want to investigate what options are listed on their web site.
By the way, professional speaker retailer Sonos, office supply site 123ink.ca and online electronics retailer Newegg Canada are also having Black Friday week sales. And you should also note there are also great deals to be had online from American retailers Amazon.com, Barnes & Noble
and Entertainment Earth, although you should account for delays at customs for foreign orders.
Canada Post had warned of Christmas volumes for some time now but there should only be slight delays for domestic shipments. And some retailers are using independent shippers to deliver locally so look for that option as well.
PS5 To Only Be Sold Online
I’m not much of a gamer but I thought those who are would like to know that Sony has decided to only offer the Playstation 5 online due to COVID-19. And here are the online retailers that will sell it on November 12th, 2020:
Click here for additional information on the Sony PS5.
Closures and openings
Although Cineplex Theatres expect to re-open on November 7th, the other chains have decided to close their doors until further notice in the province of Ontario, including Landmark and Cine Starz.
On the other hand, Sunrise Records is opening a new store in Toronto, at Sherway Gardens, and their stores are open with reduced hours and extra precautions due to COVID-19. And the Record Fair at the St. John’s Farmer’s Market in Newfoundland appears to be on schedule for Sunday, the 15th of November from 10 am to 4 pm, with precautions of course.
In regards to postal deliveries, Canada Post is still operating at Christmas parcel volumes and have advised individuals to shop and possibly ship early. And shipments have been suspended to multiple countries so you may want to consult their Delivery service interruption page prior to sending anything overseas.
Black Friday will be on November 27th this year so I will be adding information on that event later on.
SpaceX Starlink Update
CNBC has reported that the SpaceX Starlink internet service is now beta testing and that rural Canadians will have access to this service soon.
This service uses interconnected low earth orbit satellites to provide wi-fi access to individuals who have an outdoor mounted antenna. And although the estimated US$99 monthly fee is rather expensive, this service will give access to smaller communities that are much too remote for regular access.
The initial speed will be 50Mb/s to 150Mb/s, with latencies from 20ms to 40ms. But SpaceX expects to improve its systems further.
The current Federal government is also hastening its high-speed internet expansion plans in response to the pandemic according to CTV News so rural Canadians should hopefully be able to get more reasonable monthly rates in the future.