Foreign providers liable to register and collect VAT on electronic services
The South Pacific French territory of New Caledonia imposes its 11% standard Taxe Générale à la Consommation, TGC or VAT collection obligations on non-resident providers of digital or electronic services to local consumers. This includes telecommunications services.
There is a VAT registration threshold for foreign providers of XPF 7.5 million (approx. €63,000). And there are no specific marketplace or digital platform deemed supplier rules switching the obligations to them.
Digital services includes:
- Streaming or download media; tv; music; video; images; and similar;
- E-books;
- SaaS
- Server access and data storage;
- Advertising
- Some e-learning.
There is a requirement for the appointment of fiscal representative by non-resident taxpayers.
New Caledonia benefits from a tax autonomy from France, and the Congress is adopting its own VAT laws that are gathered in a local tax code (i.e. the New Caledonia Tax Code, NCTC).
Check our global VAT on digital services tracker. There are now over 120 countries imposing VAT obligations on non-resident providers of digital services.
VAT in New Caledonia
How VAT Works:
- Scope: VAT is levied on most goods and services provided within New Caledonia, including imports. VAT applies at each stage of production and distribution, where businesses charge VAT on their sales and are credited for VAT they paid on purchases, thus ensuring that the final tax burden falls on the end consumer.
- Registration: Businesses operating in New Caledonia are required to register for VAT if they exceed the threshold for turnover, which is typically around 15 million CFP francs annually. Businesses below this threshold can voluntarily opt for VAT registration if they wish to recover input VAT on purchases.
- Collection and Filing: Businesses collect VAT on sales (output VAT) and can deduct VAT paid on business-related purchases (input VAT). They must file VAT returns periodically, usually monthly or quarterly, depending on their turnover. The net VAT payable (output VAT minus input VAT) must be remitted to the tax authorities.
- Exemptions and Zero-Rated Goods: Certain goods and services are exempt from VAT, such as health and educational services, financial services, and certain public services. Additionally, exports of goods and services are typically zero-rated, meaning no VAT is charged but businesses can still reclaim input VAT.
- Imports: Imported goods are subject to VAT, calculated on the customs value of the goods, including any applicable duties.
Asia Pacific VAT on digital services
| Comments (click for details) | Rate | Date | Threshold | Comments |
| Australia | 10% | Jul 2017 | AUD $75,000 | |
| Azerbaijan | 12% | Jan 2017 | – | |
| Armenia | 20% | Jan 2022 | AMD 115million | |
| Bangladesh | 5% - 15% | Jul 2019 | – | B2B and B2C |
| Bhutan | 7% | Jul 2021 | Nu 5million | |
| Cambodia | 10% | Mar 2022 | KHR 250m | |
| China | 6%-13% | N/a | Nil | Withholding VAT; B2B and B2C |
| Cook Island | 15% | 2019 | NZ$ 40,000 | |
| Fiji | 9% | TBC | FJD 300,000 | |
| India | 18% | Jul 2017 | - | |
| Indonesia | 11% | Aug 2020 | IDR600m or 12k customers | |
| Japan | 10% | Oct 2015 | JPY 10 million | |
| Kazakhstan | 12% | Jan 2022 | Nil | |
| Kiribati | 12.5% | 2017 | AU$ 100,000 | |
| Kyrgyzstan | 12% | Jan 2022 | Nil | |
| Laos | 10% | Feb 2022 | LAK 400m | |
| Malaysia | 8% | Jan 2020 | RM500,000 | |
| Nepal | 13% | Jul 2022 | Rupees 2m | Also 2% DST |
| New Caledonia | 11% | 2020 | XPF 7.5 million | |
| New Zealand | 15% | Oct 2016 | NZD 60,000 | |
| Pakistan | 2% | Sep 2021 | Nil | Marketplace Withholding VAT |
| Palau | 10% | Jan 2023 | $300,000 | |
| Philippines | 12% | 2024 ? | P 3million | |
| Singapore | 9% | Jan 2020 | S$ 100,000 | |
| South Korea | 10% | Jul 2015 | Nil | |
| Sri Lanka | 18% | 2025? | LKR 60m | Proposals only |
| Taiwan | 5% | May 2017 | NTD 480,000 | |
| Tajikistan | 14% | Jan 2021 | ||
| Thailand | 7% | Sep 2021 | 1.8m Baht | |
| Uzbekistan | 12% | Jan 2020 | Nil | |
| Vietnam | 10% | Dec 2020 | – |
