VAT on Digital Services in 2021
The Digital Economy is changing the landscape of international taxation and countries around the world are trying to keep up with the new challenges. An increasing number of countries are taxing VAT or GST on digital services supplied from abroad to consumers.
2020 brings some new countries to the list of the ones that are already taxing companies that deliver digital services remotely. Coming from South-East Asia, find below the countries where you will need to be compliant with VAT/GST on Digital Services’ new regulations.
| Country | Standard VAT/GST rate | Levy eServices from | Type of VAT registration | Threshold |
| Malaysia | 6% | 01-Jan-20 | Service Tax on Imported Digital Services | None |
| Singapore | 7% | 01-Jan-20 | 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. |
| Thailand | 10% | 01-Jan-20 | VAT on eServices | None |
| Vietnam | 10% | 01-Jul-20 | 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 |
Here you can check the complete list of countries where a VAT/GST registration for Digital Companies is required.
If you believe these developments impact your business and would like further advice, please contact us.