The Digital Economy is changing the landscape of international taxation and countries around the world are trying keep up with the new challenges. An increasing number of countries are taxing VAT or GST on digital services supplied from abroad to consumers. Global VAT Compliance us up-to-date with all these new regulation and provides VAT/GST solutions to several Digital Companies.

VAT & GST on Digital Services

An increasing number of countries are taxing VAT or GST on electronic services supplied from abroad to consumers. As of 2015 the EU applied the Mini One Stop Shop which enables trader to register in one country and report and remit VAT for the entire EU. Global VAT Compliance files EU VAT MOSS returns in various jurisdictions throughout the EU.
Also, countries outside the EU have implemented a mechanism to charge VAT, GST or similar transaction taxes on supplies made from other countries to private individuals.

VAT for Streaming Services

Streaming Media has changed the way media services are being delivered to customers. From brick and mortar stores with physical products to digital streaming of content being broadcasted directly to homes and personal devices worldwide, supply and transaction chains are more difficult to track, making the VAT process hard to follow and stay compliant.

VAT on Video Games

The Video Game industry is evolving rapidly, and the digital distribution of video games and Gaming as Digital Services are becoming the norm. New supply and transaction chains are making hard to apply the correct VAT treatment which might lead to inaccurate VAT calculations and allocations. GVC makes sure to correctly apply VAT on Video Games so you are fully VAT compliant.

VAT for Software Companies

The software industry is evolving rapidly and the digital distribution of applications and software is increasing. With many ways of monetizing, the transaction chain is making hard to apply the correct VAT treatment which might lead to inaccurate VAT calculations and allocations.

VAT for ePublishing

The digital world and ePublishing have changed the way publications are being produced and distributed. At the same time, Governments around the world are now shifting the way they treat eBooks and other digital publications and VAT rules for the ePublishing media are changing rapidly.

DIGITAL SERVICE TAX NEWS

France approved Digital Service Tax

The Digital Service Tax (DST) was approved by the French Senate on 11 July 2019 (1), which will tax big technological companies. As previously mention in one of our posts the tax is aimed to large corporations in the digital sector whose taxable...

VAT rates for eBooks so far (2019)

Since the European Council agreed to allow member states to apply a reduced VAT rate to electronic publications in October 2018 (1), VAT rates for eBooks have changed fast in EU countries. 2019 has witnessed several VAT rate updates for...

France to introduce a Digital Service Tax

On May 21, 2019, the French senate presented a law project for the creation of a tax on Digital Services(1). Find below the main points of the law project. Taxable companies The tax is aim to large companies in the digital sector whose taxable...

GLOBAL VAT TABLE DIGITAL SERVICES

Below you will find the VAT rates and thresholds for foreign providers of digital services in different countries.
Global VAT Compliance can help you comply with all these jurisdictions.

We update this regularly but please check with us to ensure this is correct at the date you are using it.

Country Standard VAT/GST rate Levy eServices from Type of VAT  registration Threshold
Albania 20% January 1, 2015 Standard VAT registration and fiscal representative None
Argentina 21% February 1, 2018 The Argentine approach to assigning liability for the collection and remittance of VAT in this new rule is interesting. The place of supply rules are in place but the liability is not on the non-resident supplier. The liability for the collection and remittance of VAT, in practice, falls on the Argentinian customer’s payment provider. None
Australia 10% July 1, 2017 GST on eServices AU$ 75,000
Bahrain 5% January 1, 2019 VAT on eServices None
Bangladesh 15% July 1, 2018 VAT on eServices None
Belarus 20% January 1, 2018 VAT on eServices None
Colombia 19% July 1, 2018 VAT on eServices
Costa Rica 13% July1, 2019 VAT on digital services
Egypt 14% September 8, 2016 VAT on eServices
European Union Various July 1, 2003 MOSS
Ghana 15% January 1, 2016 VAT on digital services  GHS 120,000
Iceland 24% November 1, 2011 Standard VAT registration  1 million ISK
India 18% July 1, 2017 GST on OIDAR Servoces None
Japan 8% October 1, 2015 Standard VAT registration (B2B & B2C) JPY 10 million
Malaysia 6% January 1, 2020 Service Tax on Imported Digital Services None
Morocco 20% January 1, 2017 VAT on eServices None
New Zealand 15% October 1, 2016 GST on eServices NZ$ 60,000
Norway 25% July 1, 2011 VAT on eServices NOK 50,000
Québec, Canada 9,975% January 1, 2019 Québec Sales Tax (QST) on eServices
Russia 20% January 1, 2017 VAT on eServices. From January 1, 2019, Business-to-Business (B2B) supplies of digital services from foreign-based businesses to Russian businesses will be subject to VAT. None
Saudi Arabia 5% January 1, 2018 Standard VAT registration None
Serbia 20% April 1, 2017 VAT on eServices None
South Africa 14% July 1, 2014 VAT on eServices (B2B & B2C) 50.000 ZAR
South Korea 10% July 1, 2015 Standard VAT registration None
Singapore 7% January 1, 2020 GST registration via Overseas Vendor Registration (OVR) -1. Have an annual global turnover exceeding SGD$100,00; and – 2. Make B2C supplies of digital services in Singapore exceeding SGD$100,000.
Switzerland 8% January 1, 2010 VAT on eServices CHF 100,000
Taiwan 5% July 1, 2017 Business Tax NTD 480,000
Thailand 10% January 1, 2020 (potential date) VAT on eServices None
Turkey 18% January 1, 2018 VAT on eServices None
United Arab Emirates (UAE) 5% January 1, 2018 Standard VAT registration None
Uruguay 22% July 1, 2018 VAT on eServices None
Vietnam 10% July 1, 2020 The obligation to collect the VAT will fall on banks and/or payment providers, including credit card issuers. It will be their responsibility to identify payments by consumers to foreign online sellers, and deduct withholding VAT. None

for DIGITAL SERVICES

Suppliers of Digital Services with a VAT MOSS registration

 UK business will need to register under the non-EU VAT MOSS scheme in an E27 member state

 EU business will need to VAT register in the UK for to report VAT on digital services in the UK

 Non-EU business with UK VAT MOSS registration and any other EU establishment will need to moved their VAT MOSS to an E27

 Non-EU business with only UK establishment will need to register under the non-EU VAT MOSS scheme in an E27 member state