this post was submitted on 19 Jul 2023
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Canada still plans to introduce a digital services tax in 2024 despite U.S. opposition, Chrystia Freeland said.

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[–] PenguinTD 2 points 2 years ago (1 children)

3% is a good start but…

You know they are gonna list the DST on the game purchase as well right? I don't know the qualification for this or is there a cut off in revenue generated in Canada. But service tax, like sales tax, either by subscription or contractual(like cloud service, digital platform, etc) there are no Canadian owned version(that's big and stable enough), so you ended up need to buy those and they can just slap that 3% on the price tag.

[–] Greg 6 points 2 years ago (2 children)

It's not a sales tax, it's a tax on big tech revenue earned in Canada. You won't be paying 3% extra on subscriptions, games, etc

[–] PenguinTD 4 points 2 years ago

I will believe it when I see it. I hope they implement it proper.

[–] [email protected] 0 points 2 years ago (3 children)

Yes you will. All costs are passed down to the consumer. Including taxes.

[–] Greg 8 points 2 years ago* (last edited 2 years ago) (1 children)

If big tech companies could get away with charging you more they'd be doing it already. These are tech monopolies and taxing them is a good thing.

Also, it's a tax on revenue not sales anyway.

[–] [email protected] 1 points 2 years ago (1 children)

They have been increasing prices. They have also removed basic services and account sharing.

It's not taxed on net income, but gross revenue. Semantically, it's a "revenue" tax with the same effect as a sales tax. They collect $100 and get to keep $3. I appreciate the wishful thinking, but it will passed on to customers.

The Canadian solution to every problem is always "more tax".

[–] EhForumUser 4 points 2 years ago* (last edited 2 years ago)

The Canadian solution to every problem is always β€œmore tax”.

Well, traditionally it is: Establish a monopoly/monopsony.

But with US companies already entrenched, it is a little late for that. "More tax" is our fallback plan.

[–] villasv 2 points 2 years ago* (last edited 2 years ago)

So what prices specifically you think might be affected? Oculus Quest and Pixel phones? Cost per ad on Instagram? YouTube Premium monthly subscription?

[–] zephyreks 1 points 2 years ago

Good. Then it'll help Canadian companies carve out niches for themselves and contribute back to the Canadian economy.