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Canada has what locate call a national sales tax or a worth added tax (VAT). This Goods and Services Tax (G.S.T.) of five percent (as at January 1, 2008) is applicable to many Canadian transactions.
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The rationale behind this follows: Since countries can’t collect sales tax on Internet transactions at their borders, the best they can collect it (other in comparison to self-assessment system) is a good online sales tax. Further, could claimed that people in the ecu Union suffer a major competitive disadvantage because contain to collect Value Added Tax (VAT) but others don’t.