It also leads to an outflow of people. :-( Truly, a hideously complex
tax that only an accountant can love. [It does, however, teach the basic
meaning of the economic supply chain]. The Value Added Tax [VAT] disease
was inflicted by the Eurocrats of the EEC, now EU, where it spread like mad
cow disease to NZ and there its identifier mutated from VAT to GST [Goods
and Services Tax], and then directly infested Canada. I believe a strain
also struck Japan and undid the sitting government as well. Large and
powerful elements of the right wing in the US are also desirous of the
idea, because it is a way to eliminate progressive income tax and implement
a severely regressive base of taxation.
That said, however, VAT by international treaty [influenced by Europeans
seeking relative advantage] can be waived on international trade, unlike a
simple retail or export sales tax. Canadian registrars likely would not
have to collect GST on foreign accounts and no doubt some will engage in
creative tricks to make their own service appear "offshore" one way or the
other. I would think every EU and NZ registrar might face similar=
conditions.
Good luck.
--Rob DuWors, GST number long since discarded.
--------------------------------------------------------------
Robert J. DuWors <mailto:rjd@csgroup.com> tel:+1.440.255.2869 =20
Connected Systems Group 7638 Aster Drive, Mentor, Ohio 44060
OID: 1.3.6.1.4.1.2671
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