Sign up for our newsletter and get a curated list of the top trending stories and exclusive rewards every day.

Trending Topics

Get the MTL Blog app

Download on the App StoreGet it on Google Play

A 'Netflix Tax' Is Becoming A Trend Across Canada

More provinces may be affected in the near future.
A 'Netflix Tax' Is Becoming A Trend Across Canada

As you probably already heard, 2019 is shaping up to be an expensive year. The prices of many basic monthly necessities have gone up, one of those being your Netflix subscription. The streaming service officially announced back in 2018 that they would be increasing the price of their monthly subscription to all Canadian customers. 

Netflix's standard plan now costs $3 more, a total of $13.99 a month, to watch content on two devices at the same time. And the Premium plan costs $3 more, that's $16.99 a month, to watch TV shows and movies in HD and ultra HD on four devices at the same time.

READ ALSO: As The Canadian Dollar Weakens You Will Pay More For These Goods

TL;DR Both Quebec and Saskatchewan have passed laws that allow the provincial government to collect taxes from businesses not based in the province, provided the goods or services are used or consumed here. As a result, Netflix is required to charge users PST in those provinces. The federal government may also be mulling a "Netflix tax."

In addition to an increase in the base cost of the subscription, Netflix users in Quebec have also begun to pay provincial sales tax (QST) on their monthly bills.

Via ID 118990147 © Tashka2000 | Dreamstime.com

This is because the Quebec government states that companies outside of Canada that sell digital services to Quebecers must pay QST once they surpass $30,000 per year in revenue from the province. 

Recently, the province of Saskatchewan passed a similar law. This year, the provincial government began collecting taxes from businesses not based in the province, provided the goods or services are used or consumed there.

Saskatchewan Netflix customers are now paying a 6% sales tax along with their monthly subsciptions.

Via ID 93271454 © Prykhodov | Dreamstime.com

The federal government, too, has repeatedly considered a tax on foreign streaming services but abandoned the idea (at least for now) last year. But a new opinion piece by Finanial Poist contributor Jack Mintz considers the possibility of the introduction of a tax before the next election. Mintz argues that the potential revenue might be too hard for the government to resist despite the unpopularity of the tax. 

Similar concepts and conversations are also budding around the world. Canada may not be able to put off the issue for long.

Canada should definitely be charging a Netflix tax.

November 30, 2018

It sure is. It's also insulting to us as citizen's of Canada as we are collectively subsidizing Netflix through tax breaks and grants to produce more Canadian content.

January 17, 2019

There is a definite trend happening here, which begs the question, which province is next? And when will the federal government impose its own tax?

Source | Source 

More from MTL Blog

Comments 💬

Our comment section is a place to promote self-expression, freedom of speech and positivity. We encourage discussion and debate, but our pages must remain a safe space where everyone feels comfortable and the environment is respectful.

In order to make this possible, we monitor comments to keep spam, hate speech, violence, and vulgarity off our pages. Comments are moderated according to our Community Guidelines.

Please note that Narcity Media does not endorse the opinions expressed in the comment section of an article. Narcity Media has the right to remove comments, ban or suspend any user without notice, or close a story’s comment section at any time.

First and last names will appear with each comment and the use of pseudonyms is prohibited. By commenting, you acknowledge that Narcity Media has the right to use & distribute your content across our properties.

Loading...