>So, American OpenSRS RSPs can sell .CA domains to Canadians, and
>those Canadians don't have to pay GST?
Right.
>But ... and I am speaking here as a concerned Canadian RSP, not in
>my capacity as another CIRA-approved registrar ... CIRA places
>restrictions on the type of entity that can be a CIRA approved
>registrar. Namely:
>
> - Canadian Corporation, federally or provincially incorporated
This is where OpenSRS falls under..
>I assume. Are CIRA registrars who wish to wholesale domain
>registration (as OpenSRS does) obligated to make the same
>restrictions on their customers (i.e., us the RSPs)?
Why would they be obligated? The purpose of CIRA requiring Registrars to be
"Canadian" is primarily for GST to be chargeable on the $20/year CIRA fee.
(This way they can make 7% GST on every domain sold, whether or not a
Canadian ISP or U.S. ISP is re-selling the domain to the enduser, as in the
OpenSRS model)
>If so, then US RSPs shouldn't be selling .CA domains.
Yes, they can -- since the GST was already paid by OpenSRS.
>If not, then Canadian RSPs are at a distinct disadvantage.
A slight disadvantage. However, some would argue that Canadian RSPs are at
a better marketing advantage, since Canadian consumers would rather buy
from a Canadian Retailer, in Canadian Dollars.
>Either way, am I wrong to sense that there will be a problem
>down the road?
>
>- Colin
>
>(Not to mention that OpenSRS has to pay GST to CIRA on each
>domain name it "sells".)
Perhaps OpenSRS will make up for the "lost GST" margin it has paid before
turning over the domain years to a U.S. Company, by all the extra U.S.
exchange and "mark up" it makes from $20 CAD to $19 USD
Seems like a very good marketing plan to me.
