Apple on Monday announced a change in billing policy that will require Canadian users to pay taxes on TV, movie, music and audiobook purchases, bringing the tech giant in line with recently adopted tax laws.
The change in billing was brought to light by users on Reddit and a subsequent report by iPhone in Canada, the latter of which notes iTunes Store customers recently began to see fees applied to iTunes purchases.
Depending on a user's location, Apple is tacking GST, HST, PST or QST onto iTunes transactions. Tax collections, which also apply to Apple Music subscriptions, appear to have commenced on the first of the year.
Apple failed to publicly announce the tax change, prompting reports from customers in the region who found invoice pricing did not match iTunes listed rates. As it does in the U.S. and other areas, Apple does not price Canadian taxes in to iTunes content listings, meaning the final cost of a CA$4.99 movie might come out to CA$5.59, depending on purchase origin.
Apple clarified the situation to Rene Ritchie, who shared a comment from the company as part of a tweet on Monday.
"As the world's largest taxpayer, we respect the important role taxes play in society," Apple said. "Due to recent changes in Canadian legislation and the growth of our business, sales tax will now be charged on purchases of TV, movies, music and audiobooks."
Prior to the updated iTunes policy, customers in Canada were subject only to taxes on App Store purchases.
10 Comments
Well you want APPLE to pay taxes. Like every corporation, they don't pay the taxes, YOU DO. So it's just another round about way to tax the people. See the politicians look good, they're out there going look at me going after Apple not paying taxes, which they are, and now we're making them. No you're not!!! You know they aren't. They just pass those costs right on to YOU. Because so many people are just DUMB at how much the government steals from you in taxes. This is the round about way they do it. Generally they don't want to flat out say they want higher taxes on YOU, the poor and middle class. We're going to get those EVIL Rich Company's. No, in the end it's really YOU getting taxed.
Those EVIL Oil company's. Well now you pay more in gas. Who does it hurt? Not the rich person. So ya, keep going after them EVIL RICH company's to pay their fair share. HAHAHAHAHAHAHA
It's only FAIR that Canada should pay their TAXES.
"As the world's largest taxpayer, we respect the important role taxes play in society," Apple said.
<cough> D
ouble Irish with a Dutch sandwich <cough>
Do Canadian Spotify users have to pay tax now, too? It seems like they would if this is simply a change in the law and if that’s the case the news isn’t really about Apple at all.