Apple starts charging iTunes and Apple Music sales tax in Canada

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iTunes
iTunes and Apple Music just got a bit pricier in Canada.
Photo: Killian Bell/Cult of Mac

iTunes purchases have undergone a slight shakeup in Canada, as Apple Canada has started charging sales tax on top of its standard prices.

This applies to music, movie rentals, audiobooks, Apple Music subscriptions, and more. The move is in line with a new digital sales tax for non-resident suppliers which came into effect on January 1, 2019.

In a statement made to MacRumors, Apple noted that:

“As the world’s largest taxpayer, we respect the important role taxes play in society. Due to recent changes in Canadian legislation and the growth of our business, sales tax will now be charged on purchases of TV, movies, music and audiobooks. Apple has been operating in Canada for 38 years and we are proud to deliver the best products and services in the world to our customers here.”

The GST/HST sales tax means that, for instance, a $4.99 CAD movie rental will now cost you an extra $0.60 CAD — bringing the price up to $5.59 CAD. For anyone reading this in Canada, it’s worth noting that iTunes still shows the price minus sales tax, which is then added on at the billing stage.

The digital sales tax was introduced in Canada in an effort to bring in more tax revenue, as well as to help domestic suppliers who would otherwise be placed at an unfair competitive disadvantage. Similar laws having been considered in other countries, often centered on multinationals who use their international status to take advantage of certain tax benefits.

Source: iPhone in Canada

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