As well, each province and territory has its own rules. Ontario charges eight percent retail sales tax on many typical Internet transactions dpboss whereas Alberta has no provincial sales tax.
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The rationale behind this follows: Since countries can't collect sales tax on Internet transactions at their borders, the only way they can collect it (other than a self-assessment system) is with an online sales tax. Further, it is claimed that businesses in the European Union suffer a major competitive disadvantage because they have to collect Value Added Tax (VAT) but others don't.