Apple Now Charging Sales Tax on All iTunes Purchases and Apple Music Subscriptions in Canada

[MacRumors]

As noted by customers on Reddit and Twitter, and on the blog iPhone in Canada, Apple has begun charging sales tax on the purchases of TV shows, movies, music, and audiobooks in iTunes and Apple Music subscriptions in Canada.

The change went into effect January 1, 2019, with GST, HST, PST, and/or QST collected depending on the province or territory.

In a statement issued to MacRumors, Apple said the tax collection is due to "recent changes in Canadian legislation" and the growth of Apple's business around the world, including Canada, where it has operated for nearly four decades:

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.

Apple was already charging sales tax on the purchase of apps and select other digital items in Canada prior to January 1.

Article Link: Apple Now Charging Sales Tax on All iTunes Purchases and Apple Music Subscriptions in Canada

 

[profets]

Was hoping for News or Pay Cash to launch in Canada this year, but I guess we’ll have to settle with getting HST on digital purchases instead.

 

[now i see it]

Nothing like a slice of apple pie

 

[coolfactor]

Confirmed. Just paid 60¢ tax on a $4.99 movie rental.

 

[DakotaGuy]

Confirmed. Just paid 60¢ tax on a $4.99 movie rental.

60 cents on $5? Ouch. That's a pretty steep sales tax.

 

[aneftp]

It would suck for me in state of Florida. In USA. No tax on iTunes. But if I order from amazon digital streaming or YouTube tv or directv now streaming services. I get nailed with close to 13% digital sales taxes. But not on iTunes.

 

[plantemichel]

It’s always like that in my country there’s always someone complaining when we don’t pay taxes. The province of Quebec is one of the most taxes places in the world. I’m proud to be Canadian but it’s a expensive place to live.

 

[dotnet]

Bastards. Steve Jobs would have never allowed Canada to pass laws like that...

 

[Rudy69]

It’s always like that in my country there’s always someone complaining when we don’t pay taxes. The province of Quebec is one of the most taxes places in the world. I’m proud to be Canadian but it’s a expensive place to live.

Not even close, pretty high in Canada? Sure, there's still some provinces that are worse but Quebec is in the top, but in the world? Nope

 

[Dustonfoster]

How about some Apple Pay Cash? Apple? Hello? Canada is just as important as other Countries!!

 

[adamski23]

It’s always like that in my country there’s always someone complaining when we don’t pay taxes. The province of Quebec is one of the most taxes places in the world. I’m proud to be Canadian but it’s a expensive place to live.

But the quality of life is amazing!

 

[sirozha]

60 cents on $5? Ouch. That's a pretty steep sales tax.

15% (HST: federal + provincial).

Welcome to Canada. This partly pays for the universal healthcare.

 

[user_xyz]

Bastards charged me $19.00 extra for Logic X in USA!!

 

[EightyTwenty]

But the quality of life is amazing!

LOL. No it isn’t. Many major cities have already turned into garbage and the rest of the country is following the same trend.

Toronto, in particular, is an absolute dump of a city. Horrible place to live with horrible weather, horrible people, no culture, no sense of community, skyrocketing violent crime, and on and on. Feels like living in a giant, cold, airport.

 

[iLilana]

huh? this story is a few years old I think. GST is located on all my purchases from apple or iTunes.Has been ever since I can remember.

 

[verpeiler]

"As the world's largest taxpayer"

Good joke.

 

[SBlue1]

In Germany the tax is 19%. And it has been included in the price of the apps since 2015.

 

[truthertech]

"As the world's largest taxpayer"

Good joke.

Apple is the largest taxpayer in the United States AND in the WORLD

 

[Spoon!]

LOL. No it isn’t. Many major cities have already turned into garbage and the rest of the country is following the same trend.

Toronto, in particular, is an absolute dump of a city. Horrible place to live with horrible weather, horrible people, no culture, no sense of community, skyrocketing violent crime, and on and on. Feels like living in a giant, cold, airport.

I did not find Toronto very appealing while I was there ... and the traffic and drivers are worse than Los Angeles.

 

[BuddyRich]

Im wondering why they are applying it to all of Canada. The law changed on January 1st for Quebec residents only. Other provinces and the federal government do not require tax be levied on digital goods.

They have the ability to bill by province as each province (like states) have different rates.

Alberta has no PST so is GST only charged there?

 

[omihek]

Taxes are fine, but when I go into an Apple Store and purchase a 12-month Apple Music gift card, then go home and try to redeem that gift card but I'm unable to because I don't have enough iTunes credit to pay the taxes, that's when I get mad. Don't call it a 12-month Apple Music gift card if I can't get 12 months of Apple Music with it.

 

[shamino]

60 cents on $5? Ouch. That's a pretty steep sales tax.

12%. How does that compare with the normal sales tax/VAT rate for other goods and services?

 

[adamski23]

LOL. No it isn’t. Many major cities have already turned into garbage and the rest of the country is following the same trend.

Toronto, in particular, is an absolute dump of a city. Horrible place to live with horrible weather, horrible people, no culture, no sense of community, skyrocketing violent crime, and on and on. Feels like living in a giant, cold, airport.

Not everyone lives in a bustling metropolitan area .

 

[sirozha]

LOL. No it isn’t. Many major cities have already turned into garbage and the rest of the country is following the same trend.

Toronto, in particular, is an absolute dump of a city. Horrible place to live with horrible weather, horrible people, no culture, no sense of community, skyrocketing violent crime, and on and on. Feels like living in a giant, cold, airport.

Do you live there?

 

[goosnarrggh]

12%. How does that compare with the normal sales tax/VAT rate for other goods and services?

It’s been a while but you were never given an answer. So I’m committing a bit of thread necromancy.

The baseline VAT varies across Canada. There’s always a 5% federal portion, plus an additional provincial portion that depends on the province.

After adding in the provincial portion, it will add up to a minimum of 5% (in Alberta which doesn’t currently charge a provincial portion thanks to energy sector royalties) to a maximum of 15% (in the Atlantic Provinces).

Some products may be exempt from the provincial portion and so it would only be charged the 5% federal portion (such, in many provinces, as children’s clothing).

And still other items may be totally exempt from VAT (such as, in many provinces, fresh and canned groceries, prescription medications, among others).