Digital services and advertising services subject to 6% sales tax The US state of Maryland confirmed the 6% sales tax levy on a range of digital services, including: Streaming films and music, ring tones, e-books and audio books, online newspapers and cable, satellite and pay-per-view
Caribbean state consults on levying VAT on e-services from non-resident providers and marketplaces The Caribbean state of the Dominican Repulic is consulting on imposing Value Added Tax on foreign digital or electronic service providers. It would join over 90 other countries that have followed the
Kyrgyz Republic confirms non-residents subject to VAT obligations Kyrgyzstan has confirmed the obligation for non-resident providers of digital services that they are responsible for Value Added Tax obligations. This is separate from the new Kyrgyz 2% Digital Services Tax on resident providers of digital and physical
Puerto Rico has imposed Sales Tax collection and remittance obligations on facilitating marketplaces starting 1 January 2020. This was a retrospective move with the legislation passing in December 2020. The Puerto Rico current sales tax rate is 10.5%. Puerto Rico has introduced the ‘mail-order’ obligation
The Central American state of El Salvador is considering joining the global VAT on digital services movement. The Ministry of Finance has said it is looking at imposing Value Added Tax on digital or electronic services as part of a wider modernisation of its tax
Fiji proposed implementing its Value Added Tax on remote digital or electronic services sold by non-resident providers or marketplaces in 2020. There is a VAT registration threshold of FJD 300,000. The current VAT rate in Fiji is 9%. VAT Calc’s global VAT and GST on digital services tracker
Withholding VAT and INR collections both due on non-resident digital services Paraguay has launched a new INR (income tax on digital services) registration and reporting regime for non-resident providers of e-services to consumers. This applies from 1 January 2022. This is in addition to Withholding
The Cambodian General Department of Taxation is to compel non-resident providers of goods and electronic / digital services to its consumers. The implementation date is 31 March 2022; registrations under the simplified regime should be completed by 1 April 2022. This is the second delay
The east European state of Moldova has introduced Value Added Tax obligations on non-resident providers and payment intermediaries of digital services through electronic networks to its consumers from 1 April 2020. This requires a simplified electronic services VAT registration. The standard VAT rate in Moldova
Panama has again proposed imposing a Withhold VAT on payment providers processing payments to non-resident providers of digital services to consumers. This was due to come into effect on January 2020, but was delayed due to the COVID-19 crisis. The current VAT rate in Panama
