Canada is now taxing streaming services to “fund local content”
(media.kotakuinaction2.win)
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5.26%. If you want the customer to completely pay for the tax and not eat into your bottom line, you divide revenue by .95, not multiply by 1.05.
Still technically incorrect, they they would recursively need to both pay taxes on that additional 5%, and pay the new 5% tax on it as well, since it's a fee increase.
That's what the 0.26% covers, the additional revenue from hiking the price.
Say your revenue before this tax was $100, just to use easy numbers.
Of course, there's nothing stopping a company from hiking prices higher, but hiking by 5.26% is the absolute minimum to break even.
STFU, nerd!