Apple announced its new billing policy for Canada in accordance with tax changes on Monday.
Apple customers noticed higher charges after making purchases and took to Reddit for answers. The blog iPhone in Canada mentioned a purchase of Home Alone at $4.99. At checkout, Apple added a 12 percent sales tax, which brought the total to $5.59.
As of January 1, Quebec released a list of 76 non-residential suppliers that would be charging a digital sales tax. Apple, which was on the list, began collecting sales tax on TV show, movie, music, iTunes audiobook and Apple Music subscriptions in Canada.
"As the world's largest taxpayer, we respect the important role taxes play in society. 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," Apple said in a statement obtained by MacRumors.
Canada's digital sale tax aims to increase tax revenue and help domestic suppliers operate at less of a competitive disadvantage.
Some 76 companies complied with the tax, according to The Globe and Mail, but social media giant Facebook missed the January 1 deadline.
Those who oppose Quebec's approach said they don't want a "Netflix tax." This phrase refers to a proposal by the Canadian Radio-television and Telecommunications Commissions to regulate Netflix and other streaming services. Under the "tax," the services would have to contribute to a fund for Canadian content. The proposal was abandoned in 2015.
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- Apple announced its new billing policy for Canada in accordance with tax changes on Monday.
- As of January 1, Apple began collecting sales tax on TV show, movie, music, iTunes audiobook and Apple Music subscriptions in Canada.
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