>>>>>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.
>
>Are you implying that the Mulroney government was a socialist government? The Liberals kept it (after lying about how they would kill it), but still, it was instituted by a decidedly non-socialist government (as a temporary measure, of course).

Of course. . . just like income tax was started to pay for the first world war. . . a temporary measure.