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  • Jun 2nd, 2021 7:01 pm
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[OP]
Deal Expert
Mar 23, 2009
19560 posts
5647 upvotes
Toronto

Netflix tax

Forgive me if there is already a thread on this but I didn’t find it.

I finally got the letter: I’m getting charged HST on my Netflix account as of Canada Day.

—-

We hope you are enjoying your Netflix membership. Due to a recent change in Canada’s tax law, the Federal GST/HST will start to apply to your Netflix membership cost. The applicable GST/HST rate varies by province. You will see this on your next bill on or after July 1, 2021.

Questions? Visit the Help Center to learn more or contact us. Or manage your membership anytime by visiting your Account.

The Netflix team
15 replies
Deal Addict
Jun 20, 2020
4687 posts
4491 upvotes
Toronto
Some provinces already taxing Netflix users.

from Questions About Tax

The following tax rates apply to the Netflix service:
  • British Columbia: 7% PST (effective April 1, 2021)
  • Quebec: 9.975% QST
  • Saskatchewan: 6% PST


GST/HST for digital economy businesses: Overview
https://www.canada.ca/en/revenue-agency ... onomy.html


A Digital Services Tax (DST) of 3% is coming January 1st, 2022.

https://www.budget.gc.ca/2021/report-ra ... x7-en.html

Digital Services Tax Consultation
Current Status: Open until June 18, 2021
https://www.canada.ca/en/department-fin ... ation.html
Deal Addict
User avatar
Jul 25, 2008
1574 posts
405 upvotes
Ottawa
So you need extra 3% on top already 15%hst?

Thank you,. Offshore Tax haven is still free.
Deal Addict
Jun 20, 2020
4687 posts
4491 upvotes
Toronto
cf7777 wrote: So you need extra 3% on top already 15%hst?
DST is separate from GST/HST

"The DST would apply at a rate of 3 per cent on revenue from certain digital services reliant on the engagement, data and content contributions of Canadian users. For greater certainty, revenue would not include any applicable value-added tax or sales tax amounts collected on the revenue transaction."

"The DST would apply to businesses organized under various forms including corporations, trusts and partnerships."

In Ontario, HST is 13%
https://www.canada.ca/en/revenue-agency ... or.html#rt
Deal Fanatic
Feb 11, 2007
9381 posts
3899 upvotes
Canada introduced a new law that forces all companies to collect sales taxes on digital items.
Before, if the company did not have physical servers located in Canada, no tax was collected.

Topic here:
canadian-government-start-collecting-ta ... 1-2425984/

Now every company has to collect and resubmit that money to the Canadian government if they sell digital goods or services to Canadians regardless of whether or not they have physical servers located within Canada.
Deal Guru
User avatar
Mar 12, 2005
10102 posts
2065 upvotes
Victoria
You can cut down on your provinces tax, but topping up your account with gift cards and using an AB address.

I do really think that extra 3% tax is awful. Won't be a way around that one :(
Deal Fanatic
Aug 5, 2006
6163 posts
3025 upvotes
Global Village
It's not just Netflix, the tax will most likely apply on all the major video/music streaming services. 1 way to get around it for a while would be to change to an annual subscription and pre-pay for the year now with the service.
All day I dream about sports
[OP]
Deal Expert
Mar 23, 2009
19560 posts
5647 upvotes
Toronto
scoper wrote: It's not just Netflix, the tax will most likely apply on all the major video/music streaming services. 1 way to get around it for a while would be to change to an annual subscription and pre-pay for the year now with the service.
I signed up for a year for Disney+ but you can't do that for Netflix AFAIK.
Sr. Member
User avatar
Feb 12, 2006
865 posts
416 upvotes
I cancelled Netflix awhile ago.. $14.99+ tax + another tax, no thanks.

Most of the shows & films are all junk - they have not released anything good
[OP]
Deal Expert
Mar 23, 2009
19560 posts
5647 upvotes
Toronto
desolatioN wrote: I cancelled Netflix awhile ago.. $14.99+ tax + another tax, no thanks.

Most of the shows & films are all junk - they have not released anything good
Shadow and Bone was very good. Queen's Gambit and Bridgerton too. In fact, I'd say Queen's Gambit is the best show I've seen all year.
Deal Fanatic
Dec 20, 2018
5191 posts
4242 upvotes
EugW wrote: Forgive me if there is already a thread on this but I didn’t find it.

I finally got the letter: I’m getting charged HST on my Netflix account as of Canada Day.

—-

We hope you are enjoying your Netflix membership. Due to a recent change in Canada’s tax law, the Federal GST/HST will start to apply to your Netflix membership cost. The applicable GST/HST rate varies by province. You will see this on your next bill on or after July 1, 2021.

Questions? Visit the Help Center to learn more or contact us. Or manage your membership anytime by visiting your Account.

The Netflix team
took them long enough and only makes sense. ..so now mtly is 18.99+tax for me... i'm pretty sure i pay tax for Crave since beginning ... i don't think my YT music subscription charges tax yet either... but maybe soon

took so long, but understand it's not just netflix but the whole online services and taxes, much like how some sellers on amazon don't charge taxes while the bigger sellers do, not sure if its location or the smaller sellers don't reach threshold to collect but i doubt its that
Deal Guru
User avatar
Mar 12, 2005
10102 posts
2065 upvotes
Victoria
EugW wrote: Shadow and Bone was very good. Queen's Gambit and Bridgerton too. In fact, I'd say Queen's Gambit is the best show I've seen all year.
I'm hoping part of it is, is that most TV companies have struggled to film during Covid. I too thought it was odd when Netflix raised the price in the middle of Covid when barely any decent new content is coming out. I would say at the height of netflix when they had the marvel shows, trailer park boys, and other shows I like, there' would be at least 1 new show a month I found worth watching (sometimes 2). Now it's a season of a tv show every couple of month. A new season of a TV show isn't worth 50 bucks. They need to step up their game.

Part of the problem for me is their business model. It's not easy finding a new show that you like. Netflix shows don't usually go the distance, so it's continually having to try to find another one worthwhile to watch.
Deal Addict
Jun 20, 2020
4687 posts
4491 upvotes
Toronto
"Netflix is recruiting for a corporate tax manager for its new Canadian office in Toronto, which should open in an interim location in the coming months. The new hire comes ahead of a July 1 deadline for streaming services to begin collecting and remitting the federal sales tax. "

form Netflix Canada’s first hire for new Toronto office to be focused on taxes
Member
User avatar
Sep 16, 2015
459 posts
957 upvotes
Calgary, AB
cf7777 wrote: So you need extra 3% on top already 15%hst?

Thank you,. Offshore Tax haven is still free.
The 3% Digital Services Tax is a corporate tax paid by companies doing over $750 million a year. It's intended to ensure that international companies do not profit tax-free from their Canadian operations. This is *not* a consumption tax like GST/PST/HST.
Deal Fanatic
Aug 5, 2006
6163 posts
3025 upvotes
Global Village
EugW wrote: I signed up for a year for Disney+ but you can't do that for Netflix AFAIK.
You're right, just tried and I don't see a way to change my NF subscription to annual like you can do with other streaming services, Oh well...
All day I dream about sports

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