GST problem for Canadian websites
Read: Web Sites Could Face Assessment over GST Ruling (IT Business)
The basic premise of GST is that it is a tax designed to make Canada's exports more competitive by removing tax from both inputs and sale prices. In theory, only domestic consumers bear the tax - non-residents should, in principle, pay no tax except on goods and services they consume in Canada...
Meanwhile, Canadian websites and other suppliers of digital media are left with a problem. Unlike many vendors who can collect GST later if they missed it, websites are most probably unable to correct the past, and will face exposure to assessment for the past four years on their transactions with non-residents, a very unhappy situation.
++ Action Item:
Please request your "GST problem for Canadian websites" briefing note from the Canadian Association of Internet Providers (CAIP), by contacting firstname.lastname@example.org
CAIP, a Division of CATAAlliance:CAIP (Canadian Association of Internet Providers) represents internet service providers across Canada with a mandate of fostering the growth of a healthy and competitive Internet service industry in Canada through collective and cooperative action on Canadian and international issues of mutual interest.