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The rationale behind this follows: Since countries can’t collect sales tax on Internet transactions at their borders, the only way they can collect it (other compared to self-assessment system) is by having an online sales tax. Further, it is claimed that businesses in the ecu Union suffer a major competitive disadvantage because they’ve got to collect Value Added Tax (VAT) but others don’t.

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Not only is it critical establish whether a taxable sale was made in Canada or not, but also where in Canada. Whether it was made (or deemed to be made) any kind of of the Harmonized Sales tax (H.S.T.) provinces (Nova Scotia, New Brunswick, and Newfoundland and Labrador), a higher, thirteen percent H.S.T. rate applies (as at January 1, 2008). This is that those provinces have allowed Canada to get together their provincial sales taxes for these.

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Strangely, identical shoes you wear logic doesn’t apply when an American buys an ordinary book (or a car) which can bring into Canada with him and use here. It’s true that it is easier for Canada to assess such items at the border compared to cyberspace, nonetheless know of no cases of Americans being taxed on the books or cars they bring these when on the market to inhabit Canada approximately half the year.

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