In an email sent out to its Canadian customers, Netflix has informed that subscribers will be marking Canada Day with a federal tax on their monthly bills, CTV News reports. The company noted that it will be adding GST or HST charges due to a recent change in Canada’s tax law.
Netflix users will, however, not be the only ones seeing GST or HST in their monthly charges. The higher taxes will affect all international streaming services available in Canada.
The move comes after Ottawa revealed its plans last year to require foreign multinationals to collect GST or HST on digital products and services, noting that it was fair since Canadian companies were already required to do so.
Some provinces, including British Columbia and Manitoba, have already introduced provincial sales taxes on streaming operators in recent months.
Netflix says the tax rate will vary by province and start with bills issued on or after July 1.