Damn, this could have a HUGE impact on Canadian webmasters! It's always been a bit of a gray area as to whether of not Canadian webmasters are required to collect GST on memberships from non-residents. If this precedent is set, it's surely going to put Canadian webmasters at a big disadvantage. I hope an appeal to the Supreme Court is pursued!
Another interesting note..
"?The Excise Tax Act does not provide an exemption for GST or HST for subscription fees for access to information
on a server to Canada ? even when the subscriber is physically located outside of Canada,? she said."
..if the information is being hosted on a server "outside" of Canada, is it still subject to GST???
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OTTAWA, Canada ? A federal appeals court has ruled against adult entertainment website Dawn?s Place, saying that Canadian websites must collect a 6 percent goods and services tax on sales generated from nonresidents.
The decision came after Dawn?s Place appealed a tax assessment for failure to collect Canada?s 6 percent GST. A lower tax court ruled in favor of the adult website, but the company was unable to persuade the appellate court that site?s dealing in digital media ? Dawn?s Place sells picture and video downloads via a $19.95 monthly membership ? are exempt from collecting the tax.
con't
http://xbiz.com/news_piece.php?id=19414