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Canada has what sometimes call a national sales tax or a price added tax (VAT). This Goods and Services Tax (G.S.T.) of 5 percent (as at January 1, 2008) is applicable to many Canadian purchases.

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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 over a self-assessment system) is through having an online sales tax. Further, it is claimed that businesses in the eu Union suffer a major competitive disadvantage because include to collect Value Added Tax (VAT) but others don't.