Netflix to collect QST for Government in 2019
Netflix to collect QST – As of January 1st 2019, Netflix will be charging the 9.975% Quebec Sales Tax to all its customers in ‘La Belle Province’. This will be on top of the recent price increases announced by Netflix this past November 29th.
Last June, Quebec’s previous Finance Minister, Liberal MNA Carlos Leitão, passed a bill that would see Netflix and other ‘foreign online services’ charge the QST to its Quebec subscribers – and present CAQ Finance Minister Éric Girard will be seeing it through. Other services such as Amazon, Apple Music, Google Play Music and Spotify will also have to register with Revenu Québec and collect the QST from their Quebec customers. According to Revenue Quebec, the government hopes to raise an estimated $150 million in additional sales tax revenue over the next five years through it. This stands in contrast to the Federal government in Ottawa who maintain the position of refusing to charge the GST to the online entertainment companies, citing their investment into Canadian programming.
For Quebecers, this can all translate into a substantial increase for the services. Recent increases put into place by Netflix Canada are immediate for new subscribers; with monthly rates of $9.99 for a Basic Plan (up from $8.99), $13.99 for a Standard Subscription (up from $10.99) and $16.99 per month for a Premium subscription (up from $13.99). *Existing subscribers will NOT be exempt from these increases and can expect to soon receive an email with the new price changes before it takes effect.