QUEBEC – In the provincial budget announced Tuesday, the government of Quebec followed through on its threats to have foreign firms digitally hawking their wares in the province collect the 9.975% provincial sales tax from their customers.
Specifically, the budget says the government is "making the collection of the Québec sales tax (QST) mandatory for suppliers outside Québec, and it is "eliminating certain loopholes, particularly with regard to international taxation."
That means the likes of Netflix, Amazon, Spotify and others will soon have to begin collecting the tax from consumers, something both companies said they would do, when forced by local governments.
The province has said that it is missing out on more that $250 million in annual revenue thanks to this loophole it is now closing – a loophole the federal government has so far refused to address and one which has angered a great many in the province, including Quebecor CEO Pierre Karl Peladeau.
