Québec Sales tax

["Dave Farber" <farber () gmail com>]

Begin forwarded message:

> From: Jean-Francois Mezei <jfmezei_nanog () vaxination ca>
> Date: March 28, 2018 at 7:10:51 AM GMT+9
> To: "Nanog () nanog org" <Nanog () nanog org>
> Subject: Québec Sales tax
>
> Not quite networking but probably relevant.
>
> The Canadian province of Québec just introduced a new budget with
> basically the intent to force foreign digital companies who sell
> services to Québekers 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 Québec residents, will be required to self register with QC
> government to collect local sales tax (and remit to QC government).
>
> The Québec budget expects that validation of address will be based on IP
> address geolocation or custoemrs send paper bills to prove place of
> residence.
>
> (Although requiring full address/phone number and sendint this to credit
> card network for authorization might constitute a better means to
> validate address).
>
> 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 Vidéotron in Ontario (with
> a couple of exceptions where Vidéotron has service in a couple fo
> Ontario towns). In Western Canada, things are harder as Shaw serves BC,
> AB, SASK and MB.



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