>>>>>>>>>>Michel, I'm trying to understand the logic. Did anybody explain why the government feels that someone who buys your service in, say, Bulgaria, might use it in Canada and therefore must be taxed, while a Bulgarian who buys shoes by mail couldn't possibly ever use those shoes in Canada, so doesn't need to pay a taz? Or do I completely misunderstand what they mean when they say 'may be used in Canada'.
>>>>>>>>>
>>>>>>>>>The ruling states:
>>>>>>>>>
>>>>>>>>>"When the place of negotiation is in New Brunswick and the IPP is no used exclusively outside New Brunswick, the place of supply is in New Brunswick and tax is charged at a rate of 15%."
>>>>>>>>>
>>>>>>>>>New Brunswick here is the same as Canada as we have harmonized sales tax thus 14%. At the time the ruling was done, the tax was 15%.
>>>>>>>>>
>>>>>>>>>So, this is why as a last resort, if we loose our appeal, our last option to keep this product running will be to ban the use of this service in Canada which might (as per the last meeting I had with them, this will probably be accepted as is) satisfy the CRA since the ruling is based on the possibility of use in Canada. As mentioned in the article, that would then alienate the Canadian customers, of course.
>>>>>>>>
>>>>>>>>Michel,
>>>>>>>>
>>>>>>>>It's the same over here: what matters is the place of service
>>>>>>>>
>>>>>>>>If I were you and you were me and I look into the VAT law then
>>>>>>>>(1) general rule : place of service is : office of the supplier of the service, ie where my office is = Belgium
>>>>>>>>(2) unless one of the following exceptions
>>>>>>>>
>>>>>>>>...
>>>>>>>>....
>>>>>>>>office of the receiver of the service (read Canada) if receiver of the service is outside the ( vat) community, and telecomm services or intellectual work
>>>>>>>>....
>>>>>>>>.....
>>>>>>>>
>>>>>>>>
>>>>>>>>If you leave Canada, there will be the law of the other country. I bet it will be similar
>>>>>>>>
>>>>>>>>Best of luck in this matter
>>>>>>>
>>>>>>>I don't think the USA has a VAT/GST tax . . . . yet. All in all, it's just another cash grab by greedy socialist based governments. However, if we don't scream at them, they'll assume that we like what they are doing. Have you ever noticed the remarkable similarity between the government and the mafia? Both have meeting and make rules to extract cash from your wallet and both hire people with guns to enforce those rules. So, never forget that taxes are not paid. They are stolen.
>>>>>>
>>>>>>
>>>>>>USA has a sales tax, doesn't it ? That is similar to VAT.
>>>>>>Taxes are our share in the cost of the community we live in.
>>>>>
>>>>>PMFJI,
>>>>>States may or may not have Sales Tax. Washington and Montana plus one other state that I can not remember does not have sales tax. And there is no Federal sales tax that I know of for food and services. We have taxes on gas, car sales and such. HTH
>>>>
>>>>Ok. The income of a Federal state is comprised of
>>>>(1) Contributions from its states - part of state taxes that are passed on to the next level if you will
>>>>(2) Direct taxes, ie tax based on the income of people/companies
>>>>(3) Indirect taxes, ie one gets taxed when a certain action is done, eg buy food, a house, a car - sort of sales tax
>>>>
>>>>So, # 3 is zero in the USA - Federal level this is. This means that #1 and #2 are higher
>>>>
>>>>Over here there's federal sales tax. The states receive part of that from the federal level.
>>>>
>>>>Doesn't really matter how it is done. What I wanted to say is that moving out of Canada will not take the problem away. You'll have the same problem, but somewhere else
>>>
>>>But we're getting off the point, which is: Taxing purchases by foreign buyers. You would think that a government with scruples (if one exists) would allow the foreign buyer to reclaim the tax money they were charged. But of course, the transaction took place in Canada so the tax is collected from the Canadian business person, who should be collecting it from the purchaser. I am willing to venture a guess that some business people hide the tax inside the price of the item and the puchaser never gets to know that a tax was collected.
>>___________________
>>>>But we're getting off the point, which is: Taxing purchases by foreign buyers
>>
>>It's not unusual and it depends on the law
>>
>>>>You would think that a government with scruples (if one exists) would allow the foreign buyer to reclaim the tax money they were charged
>>
>>same reply as above. Some mechanisms are in place. I think that if I were to buy a car in Canada and export it, I would not have to pay taxes in Canada. But I would end up paying local taxes when the car gets here.
>>
>>We can discuss this as long as we wish. At the end of the day it's the (fiscal) law that is the bible. Each country has one and there are treaties between some countries in order to avoid double income taxes - now I'm getting off the point. eg what happens if I work as an employee in the USA ? Where will I pay income tax ? It depends on some criteria, eg period of time, ...
>>
>>What happens if Kim Clijsters plays tennis in the USA and wins 1,000,000.00 USD ? Where will she be taxed ? Look at the treaty
>
>Do people have right to fight taxes (in legitimate way, e.g. by signing petitions), or they should accept taxes as Bible (your word) and shut up?

Sure, they can always try