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Industry Solutions

DIGITAL SERVICES

Managing VAT compliance in today’s dynamic economic environment has become ever more challenging. As the digital economy continues to grow in an accelerated speed, governments across the world are rapidly introducing new tax measures in efforts to capture a resulting revenue.

The most common methods for taxing the digital services include the introduction of Digital Services Tax (DST) or the expansion of the Value Added Tax (VAT) and Goods and Services Tax (GST) indirect tax to the sale of digital services.

In the absence of multilateral rules that regulate taxing digital services world-wide, countries started to introduce their own rules. The DST or VAT/GST rules for digital services therefore, can differ significantly per country.

 

 

The most common differentiating factors include:

  • Place of supply rules

  • Tax Rates

  • Thresholds

  • VAT compliance deadlines

  • Administrative requirements

  • Number of users who use the service

  • Number of on-line business contracts related to the service

 

Multinational companies expanding their digital services to new markets are often unaware that they are taking on an increasing VAT compliance burden. Growing into new markets also means that multinationals often must confront the banking or technological limitations in the country of compliance, causing tax and finance departments to spend a disproportionate amount of time on compliance activities.

 

These challenges require solutions that help businesses comply with new VAT / GST obligations and grow. 

 

 

GLOBAL VAT COMPLIANCE

Leading VAT Service Provider for International Businesses

We are Global VAT Compliance (GVC), a leading transaction tax compliance service provider with over a decade years of expertise in indirect taxation and tax advisory. We serve multinational companies with VAT compliance in over 90 countries worldwide.

View our video on how GVC can help your business.

End-to-End Compliance Solutions

Starting from the determination of taxable services or customer bases to processing your VAT payments, we provide an end-to-end compliance service. The scope of our VAT compliance services for digital services include: 

 

A global coverage and a single point of contact model

Our VAT compliance services cover over 90 jurisdictions worldwide

 

All 27 EU Countries
Bhutan
India
New Zealand
Taiwan
Albania
Bosnia & Herzegovina
Indonesia
Nigeria
Tanzania
Andorra
Cambodia
Japan
Norway
Thailand
Angola
Canada*
Kazakhstan
Oman
Turkey
Australia
Chile
Kenya
Philippines
Uganda
Azerbaijan
Colombia
Korea
Russia
Ukraine
Bahamas
Costa Rica
Kosovo
Saudi Arabia
United Arab Emirates
Bahrain
Ecuador
Malaysia
Serbia
United Kingdom
Bangladesh
Egypt
Mauritius 
Singapore
United States
Barbados
Georgia
Mexico
South Africa
Uruguay
Belarus
Ghana
Moldova
South Korea
Uzbekistan
Bermuda
Iceland
Morocco
Switzerland
Vietnam
* British Columbia, Manitoba, Quebec, Saskatchewan

Most of Digital Service Markets we serve

 

 

SaaS

Cloud Computing

E-Publishing

Cryptocurrency

Music Streaming

Video Streaming

On-line Education

Gaming

 

Global VAT/GST Rates

 

VAT rates and thresholds for foreign providers of digital services across the world: 

 

País

Tax Rate

Type of Tax

Type of VAT Collection

Threshold

Albania
20%
VAT
E-services
10 million ALL
Andorra
4,5%
IGI
Sales Tax
40 000 EUR
Angola
14%
VAT
E-services
Australia
10%
GST
E-services
75,000 AUD
Austria
20%
VAT
E-services
10,000 EUR
Azerbaijan
18%
VAT
E-services
200,000 AZN
Bahamas
10%
VAT
E-services
100,000 BSD
Bahrain
10%
VAT
E-services
37,500 BHD
Bangladesh
15%
VAT
E-services
8 million BDT
Barbados
22%
VAT
Mobile services
200,000 BBD
Barbados
17.5%
VAT
E-services
200,000 BBD
Belarus
20%
VAT
E-services
Bélgica
21%
VAT
E-services
10,000 EUR
Bhutan
7%
GST
VAT / GST
5 million BTN
Bosnia & Herzegovina
17%
VAT
E-services
50,000 BAM
Bulgaria
20%
VAT
E-services
19600 BGL
Bulgaria
6%
VAT
E-book
19600 BGL
Cambodia
10%
VAT
E-services/e-commerce
250 million KHR
Canada – GST/HST
5%
GST/HST
E-services/goods
30,000 CAD
Canada – British Columbia
7%
PST
Sales tax
10,000 CAD
Canada – Manitoba
7%
RST(PST)
E-services
Canada – Quebec
9,975%
QST
E-services
30,000 CAD
Canada – Saskatchewan
6%
PST
E-services
Chile
19%
VAT
E-services
Colombia
19%
VAT
E-services
Costa Rica
13%
VAT
E-services
Croacia
25%
VAT
E-services
10,000 EUR
Chipre
19%
VAT
E-services
10,000 EUR
Czechia
21%
VAT
E-services
10,000 EUR
Dinamarca
25%
VAT
E-services
10,000 EUR
Ecuador
12%
VAT
E-services
Egypt
14%
EST
E-services
500,000 EGP
Estonia
20%
VAT
E-services
10,000 EUR
Finlandia
24%
VAT
E-services
10,000 EUR
Francia
20%
VAT
E-services
10,000 EUR
Georgia
18%
VAT
E-services
Alemania
19%
VAT
E-services
10,000 EUR
Ghana
12,5%
VAT
VAT / GST
200,000 GHS
Grecia
24%
VAT
E-services
10,000 EUR
Hungría
27%
VAT
E-services
10,000 EUR
Iceland
24%
VAT
E-services
2 million ISK
India
18%
GST
E-services
10 lakh INR
Indonesia
10%
VAT
E-services
600 million IDR/12,000 visitors per year
Irlanda
23%
VAT
VAT / GST
10,000 EUR
Italia
22%
VAT
E-services
10,000 EUR
Japan
10%
Consumption Tax
E-services
10 million JPY
Kazakhstan
12%
VAT
E-services
Kenya
16%
VAT
E-services
Korea
10%
VAT
E-services
Kosovo
18%
VAT
E-services
Letonia
21%
VAT
E-services
10,000 EUR
Lituania
21%
VAT
E-services
10,000 EUR
Luxemburgo
17%
VAT
E-services
Malaysia
6%
VAT
E-services
500,000 MYR
Malta
18%
VAT
E-services
10,000 EUR
Mauritius
15%
VAT
E-services
10 million MUR
Mexico
16%
VAT
E-services
Moldova
20%
VAT
E-services
Morocco
20%
VAT
E-services
Netherlands
21%
VAT
E-services
10,000 EUR
Netherlands
9%
VAT
e-publications
New Zealand
15%
GST
E-services
60,000 NZD
Nigeria
7.5%
VAT
E-services
25,000 USD
Norway
25%
VAT
E-services
50,000 NOK
Oman
5%
VAT
E-services
38,500 OMR
Philippines
12%
VAT
E-services
3 million PHP
Polonia
23%
VAT
E-services
46500 PLN
Portugal
23%
VAT
E-services
10,000 EUR
Rumanía
19%
VAT
E-services
10,000 EUR
Russia
16,67%
VAT
E-services
Saudi Arabia
15%
VAT
E-services
375,000 SAR
Serbia
20%
VAT
E-services
Singapore
7%
GST
E-services
1 million SGD
Eslovaquia
20%
VAT
E-services
10,000 EUR
Eslovenia
22%
VAT
E-services
10,000 EUR
South Africa
15%
VAT
E-services
1 million ZAR
South Korea
10%
VAT
E-services
España
21%
VAT
E-services
10,000 EUR
Suecia
25%
VAT
E-services
10,000 EUR
Switzerland
7,7%
VAT
E-services
100,000 CHF
Taiwan
5%
VAT
E-services
480,000 NTD
Tanzania – Mainland
18%
VAT
E-services
100 million TZS
Tanzania – Zanzibar
15%
VAT
E-services
100 million TZS
Thailand
7%
VAT
E-services
1.8 million THB
Turkey
18%
VAT
E-services
Uganda
18%
VAT
E-services
Ukraine
20%
VAT
E-services
1 million UAH
United Arab Emirates
5%
VAT
E-services
United Kingdom
20%
VAT
E-services
85,000 GBP
Uruguay
22%
VAT
E-services
Uzbekistan
15%
VAT
E-services
Vietnam
10%
VAT
E-services

 

Descargo de responsabilidad

La información proporcionada por Global VAT Compliance B.V. en esta página web está destinada únicamente a fines informativos generales. Global VAT Compliance B.V. no se responsabiliza de la exactitud de la información contenida en estas páginas, y no se hace responsable de las reclamaciones o pérdidas derivadas del uso de esta información. Si desea recibir información relacionada con el IVA, póngase en contacto con nuestros expertos en support@gvc.tax

 

Get in touch with one of our VAT experts