Netflix subscribers will mark Canada Day with a federal tax on their monthly bills.
The streaming giant announced this week to its Canadian customers that it will add GST or HST fees “due to a recent change in Canadian tax law.”
The company says the tax rate will vary by province, starting with invoices issued on or after July 1.
Netflix users won’t be the only ones seeing GST or HST in their monthly fees as the higher taxes will affect all international streaming services available in Canada.
The move came after Ottawa revealed plans last year to require overseas multinational corporations to charge GST or HST on digital products and services, which they believed was fair as Canadian companies already had to do so.
Some provinces have taken similar steps in the past few months to introduce provincial sales taxes for streaming operators.
British Columbia and Manitoba introduced a seven percent PST fee earlier this year.