Apple begins collecting iTunes and Apple Music sales tax in Canada
Apple on Monday announced a change in billing policy that will require Canadian users to pay taxes on TV, movie, music and audiobook purchases, bringing the tech giant in line with recently adopted tax laws.
The change in billing was brought to light by users on Reddit and a subsequent report by iPhone in Canada, the latter of which notes iTunes Store customers recently began to see fees applied to iTunes purchases.
Depending on a user's location, Apple is tacking GST, HST, PST or QST onto iTunes transactions. Tax collections, which also apply to Apple Music subscriptions, appear to have commenced on the first of the year.
Apple failed to publicly announce the tax change, prompting reports from customers in the region who found invoice pricing did not match iTunes listed rates. As it does in the U.S. and other areas, Apple does not price Canadian taxes in to iTunes content listings, meaning the final cost of a CA$4.99 movie might come out to CA$5.59, depending on purchase origin.
Apple clarified the situation to Rene Ritchie, who shared a comment from the company as part of a tweet on Monday.
"As the world's largest taxpayer, we respect the important role taxes play in society," Apple said. "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."
Prior to the updated iTunes policy, customers in Canada were subject only to taxes on App Store purchases.
The change in billing was brought to light by users on Reddit and a subsequent report by iPhone in Canada, the latter of which notes iTunes Store customers recently began to see fees applied to iTunes purchases.
Depending on a user's location, Apple is tacking GST, HST, PST or QST onto iTunes transactions. Tax collections, which also apply to Apple Music subscriptions, appear to have commenced on the first of the year.
Apple failed to publicly announce the tax change, prompting reports from customers in the region who found invoice pricing did not match iTunes listed rates. As it does in the U.S. and other areas, Apple does not price Canadian taxes in to iTunes content listings, meaning the final cost of a CA$4.99 movie might come out to CA$5.59, depending on purchase origin.
Apple clarified the situation to Rene Ritchie, who shared a comment from the company as part of a tweet on Monday.
"As the world's largest taxpayer, we respect the important role taxes play in society," Apple said. "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."
Prior to the updated iTunes policy, customers in Canada were subject only to taxes on App Store purchases.
Comments
Those EVIL Oil company's. Well now you pay more in gas. Who does it hurt? Not the rich person. So ya, keep going after them EVIL RICH company's to pay their fair share. HAHAHAHAHAHAHA
It's only FAIR that Canada should pay their TAXES.
<cough> Double Irish with a Dutch sandwich <cough>
As with US states the rate will vary from province to province.
Read the headline.
A small number of consumers are legitimately clueless about sales taxes and use taxes. Far more consumers actively choose to remain clueless about sales and use taxes to maintain an illusion of deniability while committing tax fraud. If you purchase a product, say a $2000 iMac from B&H Photo in New York and they do not charge you sales tax because you live in a state that they do not collect sales taxes for, say Tennessee, you are personally responsible for paying use tax to the state for that purchase. If you do not pay the tax you are committing tax fraud. In essence, retailers that boldly proclaim "No Sales Tax for purchases outside of NY" or something to that effect are enticing you to at least consider the option of committing tax fraud against the state that you live in to make you believe you are circumventing taxes. They can do this because it makes their store more attractive, they have no obligation to collect taxes for your state, and if you don't pay the taxes that you are required to pay in your state, hey it's all on you. Regardless of anything related to the relationship between the retailer and the states, you are always required to pay the taxes even if the retailer is not obligated to collect them.
Of course the vast majority of consumers know this, but choose to ignore it because the probability of getting caught is low. This is why taxing agencies at all levels are trying to enact new laws that no longer rely on individual compliance with tax laws. So Apple is essentially getting burdened with a requirement to serve as a tax collector for countries and states because we cannot be trusted.