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Business, Movies & TV

Quebec expected to place sales tax on Netflix in 2018

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DH Montreal Staff Oct 04, 2017 7:01 am 87

Quebec says it will place a provincial sales tax on Netflix, despite a recent deal struck between the streaming company and the federal government that doesn’t charge customers GST.

According to the Montreal Gazette, the motion has the support of all parties in the National Assembly.

Finance Minister Carlos Leitão says he first wants to speak with the federal government to learn more about their deal with Netflix. Leitão says he wants to see a physical copy of the agreement, which has not been publically released.

Last week, the federal government and Netflix officially announced a milestone agreement that will see the streaming company invest $500 million in original productions in Canada over the next five years.

As part of the investment, Netflix will continue to work with Canadian producers, production houses, broadcasters, creators and other partners to produce original Canadian content in both English and French.

The deal will also focus on the creation of Canadian French-language content on the platform with a market development strategy for Canada. This will include a $25 million investment that will include “pitch days” for producers, recruitment events, and other promotional and market development activities.

Despite the focus on French-language content in the federal government’s deal with the streaming company, Quebec is expected to pass its Netflix tax in early 2018.

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DH Montreal Staff

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