Foreign providers liable to register and collect VAT on B2C electronic services
The East African state of Federal Democratic Republic of Ethiopia extended VAT collection obligations to non-resident providers of digital services in August 2024. This was provided under the VAT Proclamation 1341/2024. This includes marketplaces and similar digital platforms becoming the deemed supplier where they facilitate the sale of electronic services to local consumers.
A VAT registration threshold of ETB 2 million has been set, approximately US $16,800, per annum. Beyond this level, providers or marketplaces must register with the Ministry of Revenues and Customs Authority. They are then required to charge 15% Ethiopian VAT, and submit returns with remittances each month.
Check our global VAT on digital services tracker. There are now over 120 countries imposing VAT obligations on non-resident providers of digital services.
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 | – |
VAT in Ethiopia