Netflix tells subscribers monthly bills will include sales tax on Canada Day

TORONTO – Netflix subscribers will be marking Canada Day with a federal tax on their monthly bills.

The streaming giant told its Canadian customers this week that it will be adding GST or HST charges "due to a recent change in Canada's tax law."

The company says the tax rate will vary by province and start with bills issued on or after July 1.

Netflix users won't be the only ones seeing GST or HST in their monthly charges as the higher taxes will affect all international streaming services available in Canada.

The move comes after Ottawa unveiled plans last year to require foreign multinationals to collect GST or HST on digital products and services, something they said was fair since Canadian companies were already required to do so.

Some provinces made similar moves to introduce provincial sales taxes on streaming operators in recent months.

British Columbia and Manitoba enacted a seven per cent PST charge earlier this year.

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This report by The Canadian Press was first published June 2, 2021.