QUEBEC AGENCIES SOLVE TAX PROBLEM
By Adnews Staff
The Association of Quebec Advertising Agencies has welcomed a decision made by the Quebec Finance Department that changes requirements regarding the Quebec sales tax. Previously Quebec agencies were required to include the 7.5% Quebec sales tax to invoices sent to national clients based outside of Quebec that had a business address in the province. The requirement was part of a tax harmonization in 1997 related to inter-provincial business. However, only Quebec and the Atlantic provinces adopted the requirement. Joseph Mullie, general manager of the AAPQ said although the tax was in most instances recoverable, the requirement still created a problem for agencies. Daniel Rabinowicz, AAPQ chairman and executive vice president of Cossette Communication-Marketing, explained that when agencies were bidding on jobs, once the presentations were completed, agencies were obliged to explain Quebec tax laws to their contacts. Once the AAPQ was made aware of the problem, representatives talked with officials in the provincial department of revenue and finance and on March 14, during the provincial budget speech, the requirement was abolished. The AAPQ is a non-profit organization that works to promote and defend the interest of its members.