Australia intends to implement a taxation of sales and the commission of hotel rooms by non-established suppliers. Where the annual turnover from the provision of Australian hotel rooms exceeds AUD 75,000 p.a., the supplier will have to account for 10 % Australian GST.
The Colombian tax authority has recently confirmed that local VAT will be applicable on the sale of e-services to consumers by non-resident businesses.
At present, non-resident businesses providing digital services in Colombia do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage that this gives to non-resident companies over Colombian resident providers, the Colombian tax authorities have now confirmed that VAT at 19% will be applied on these types of transactions from 1 July 2018.
This new tax will be applied to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.
The VAT System, which was implemented on 01.07.2017, should be simplified by the end of the year. Currently, there are three VAT returns to be submitted each month. The extensive reporting obligation should be replaced by a single summarizing VAT return which is due once a month. Furthermore, small companies will only be obliged to submit VAT returns on a quarterly basis.
The Goods and Service Tax, which was implemented on 01.04.2015, effectively ceased operation on 01.06.2018, when the tax rate was decreased from 6 % to 0 %. In a further step, it is planned to replace the GST by a Sales and Service Levy.
The exemption threshold for the importation of goods will be reduced by the end of the year. The previous exemption threshold of EUR 1,000 was reduced to EUR 500 on 01.07.2018. With effect from 01.01.2019, a further reduction to EUR 200 is planned.
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