Ending of Withholding VAT requirements for electronic payments 1st Sept 2025 The requirement for payment providers to withhold the VAT element on electronic payments for foreign digital services will end on 1 September 2024. This was confirmed last week in a Ministry of the Economy
Finance Ministry to extend VAT collections to app stores 1st April 2025 The Japanese National Tax Agency has published Frequently Asked Questions to support the imposition of the deemed supplier Consumption Tax obligations on digital platforms for digital services. This comes into effect on 1
Update to 2017 requirements, including place of supply and EEU supplies The Russian Federation imposed the obligation to Value Added Tax register on foreign providers of digital or electronic services from 1 January 2017. This includes sales of services to consumers and businesses customers, too
Consultation on introduction of reverse charge on B2B sales by non-residents 1st April 2025 The South African National Treasury has opened a consultation until 31 August 2024 on ending the obligation on non-resident providers and digital platforms to charge VAT on digital services to VAT-registered businesses.
1st Aug 2024: Budget removes contentious tax on non-resident providers of digital services The latest Indian budget has confirmed the scrapping of the 2% equalisation levy on digital companies, online education-providing firms, and software-as-a-service (SaaS) providers without a permanent physical presence in India. This is
200-transaction per annum threshold removed; $100k threshold remains The US state of North Carolina joins most other US states in withdrawing its transaction threshold for non-resident sellers. This had been 200 or more sales per annum, and applied to out-of-state – sellers without a presence
Kenya to fall into line with $250 billion OECD global tax reforms – unlocks US free trade deal Kenya has brought forward in the draft Tax Laws (Amendment) Bill 2024 plans to replace its existing 2021 1.5% Digital Services Tax (DST) as it withdraws its objections
Fiscal representatives register and report VAT on behalf of foreign providers Madagascar imposed its Value Added Tax on digital or electronic services (and goods) sales to consumers by foreign providers via local fiscal representatives. Where a non-resident provider B2B or B2B digital services, it
The West African country of the Republic of Guinea imposed Value Added Tax on foreign providers of digital or electronic services from 2016, further updated in January 2022. There is no VAT registration threshold. A Tax Representative is required. For B2B transactions, nil-rating reverse charge
Non-residents VAT obligations for electronic services The island archipelago of Cape Verde imposed Value Added Tax on foreign providers of digital services to its consumers in January 2022. The obligation only applies to non-resident providers identified by the Ministry of Finance in a regularly updated
