Bits, Bytes, and Taxes: VAT and the Digital Economy in Canada

Foreign providers of online services enjoy a tax advantage over domestic providers, according to a new report from the C.D. Howe Institute. In Bits, Bytes, and Taxes: VAT and the Digital Economy in Canada, author Rosalie Wyonch notes that the digital economy in Canada is expanding access to global markets for online services that are not subject to sales tax when they enter Canada.