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As well, each province and territory has specific to it rules. Ontario charges eight percent retail sales tax on many typical Internet transactions whereas Alberta doesn’t have an provincial sales tax.

The rationale behind this follows: Since countries can’t collect sales tax on Internet transactions at their borders, the best way they can collect it (other compared self-assessment system) is with an online sales tax. Further, it is claimed that businesses in the eu suffer another large competitive disadvantage because need to be collect Value added tax (VAT) but others never.