Montreal (AFP) – Quebec will start applying a sales tax to some internet companies such as Netflix and AirBnb starting in 2019, the government of the French speaking province said Tuesday.
But only internet platforms selling “intangible goods or services” will be obliged to pay the provincal sales tax set at 9.975 percent, according to the 2018-2019 budget presented by the Liberal government of Premier Philippe Couillard.
Foreign platforms will have to register in Quebec in order to sell their services to the people of Quebec.
Starting January 1, 2019 these companies will have to assess this provincial tax and pay it to the government.
Companies that are Canadian but based outside Quebec will have to do so starting September 1 of next year.
Online retailers such as Amazon will be spared.
Canada is waging a campaign against tax dodging by big online companies. The federal government said recently it wanted to go after internet giants, although it did not say when.