Re: PAB Re: core VAT, Sales Tax, Consumption Tax on Internet

Robert J. DuWors (rjd@csgroup.com)
Thu, 04 Dec 1997 22:26:05 -0500


At 11:18 AM 12/5/97 +0900, Robert F. Connelly wrote:
>At 10:39 PM 12/3/97 +0000, you wrote:
>>In Canada and more specifically in the province of Quebec there is a
>>federal and a provincial tax to be applied for any products and services
>>(kind of a VAT).
>>
>>The amounts are substantial: 15 %
>> -GST (federal): 7 %
>> -PST (provincial in Quebec): 7.5 % that add's up to the first tax
>>
>>These taxes have no effects for corporations since what you pay is
>>reduced by what you charge.
>>
>>But for the individual (the end client) he cannot deduct it, so its a
>>15% tax !
>>
>>
>>These taxes only apply for Canadian customer.
>>
>>
>>Jacques Bernier
>>President
>>M=E9diafusion inc
>
>Dear Jacquie et al:
>
>Your posting prompts me to solicit all potential registrants in Canada to
>register with a Registrar which is *not in Canada* (such as us ;-). They
>can then save 15% on their registration of a domain name.
>
>Such will certainly not benefit Canada. :-{ It will result in an outflow
>of capital from Canada by Canadians purchasing *services* via Electronic
>Commerce, using credit cards, cyber-cash or the like, from vendors located
>in *enlightened* jurisdictions.

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
(iso.org.dod.internet.private.enterprise.csgroup)
CSGroup (SM)