Qu??bec Sales tax
math at sizone.org
Tue Mar 27 22:21:12 UTC 2018
If Netflix has no physical presence in Quebec, what the lever are they going
to use to force this? A lawsuit in <state of netflix incorporation> in the
US? What court is going to entertain a foreign jurisdiction's tax claim in
their court? And how would that be then enforced?
Canada has tried this before:
Court file: https://scc-csc.lexum.com/scc-csc/scc-csc/en/item/16701/index.do
Im a big fan of Canada standing up for its sovereignty (I live here), but nice
On Tue, Mar 27, 2018 at 06:10:51PM -0400, Jean-Francois Mezei said:
>Not quite networking but probably relevant.
>The Canadian province of Qu??bec just introduced a new budget with
>basically the intent to force foreign digital companies who sell
>services to Qu??bekers to collect the local value added sales tax and
>remit those to the QC government.
>The goal is to capture tax from Netflix who has so far escaped taxation
>in Canada by having no legal/physical presence in Canada, no cache
>servers of its own etc. Netflix does not currently collect province
>information from customers (or any address info for that matter).
>They based many of their arguments on an OECD study (which ironically
>the Canadian federal government says is not completed yet (as excuse for
>not proceeding with similar tax).
>So foreign digital services will be required to require subscibers enter
>AND VALIDATE their address so that they have an accurate province field
>(validation remains to be finalized), and IF they sell more than $30,000
>to Qu??bec residents, will be required to self register with QC
>government to collect local sales tax (and remit to QC government).
>The Qu??bec budget expects that validation of address will be based on IP
>address geolocation or custoemrs send paper bills to prove place of
>(Although requiring full address/phone number and sendint this to credit
>card network for authorization might constitute a better means to
>I suspect the big winners will be VPN services in the USA :-)
>Because many ISPs span multiple provinces, IP geolocation generally
>points to their HQ address, not necessarily the province of the
>subscriber. (This is especially true for DSL in bell Canada wholesale
>where currently a single point of connection between Bell and ISP allows
>full reach of all of its DSL territory in QC/ON. For Cable, ISPs require
>different IP pools for Rogers in Ontario and Vid??otron in Ontario (with
>a couple of exceptions where Vid??otron has service in a couple fo
>Ontario towns). In Western Canada, things are harder as Shaw serves BC,
>AB, SASK and MB.
Ken Chase - math at sizone.org Guelph Canada
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