In the aftermath of a federal court ruling that blocked the sale of e-commerce to non-residents, businesses are starting to take steps to comply.
The Government has announced it is moving to create a national registry of people living in Canada who buy and resell goods and services online.
It’s the latest move in an ongoing effort to clamp down on foreign online businesses that are used to circumvent Canadian law and evade taxes.
“We have an opportunity to go forward and do something to ensure that Canadians have access to the same online goods and service options that are available to Canadians,” Public Safety Minister Steven Blaney said in a statement.
Companies including menards and online retailer Crate & Post are also considering creating new Canadian online services, including the possibility of a national marketplace.
As part of the new system, companies will have to create an online account, which will be used for paying for goods and to manage customer accounts.
The move comes after months of consultation, and comes as Canadian retailers have begun to feel the effects of a global economic slowdown.
The government has also announced that e-tailers will be able to charge sales tax, but that companies will not be allowed to set the rate, as it would be contrary to international standards.
A total of 9,000 new jobs will be created through the new regulations.
“I’m not sure that any of the businesses in this country are going to be able go forward without having to create the right infrastructure,” said Paul Ryszard, president of the Canadian Association of Independent Business.
The rules also include requirements for the creation of a list of online sellers and sellers’ websites, along with new reporting requirements for online sales.
Companies that fail to comply with the new rules will face penalties ranging from fines to temporary suspension from the Canadian government.
As of April 1, businesses that operate more than one business in Canada will have three business days to comply, and will have two business days in which to set up new sales accounts.