Puerto Rico is considering the introduction of VAT at 15% on the provision of electronic services in the country.
At present, businesses providing digital services do not have to charge VAT on their sales. However, in an effort to cut its growing state deficit, the Puerto Rican government has announced that it is considering introducing the tax at 15% on the sales of these types of services, which includes sales by foreign businesses.
Puerto Rico
Puerto Rico is considering the introduction of VAT at 15% on the provision of electronic services in the country.
At present, businesses providing digital services do not have to charge VAT on their sales. However, in an effort to cut its growing state deficit, the Puerto Rican government has announced that it is considering introducing the tax at 15% on the sales of these types of services, which includes sales by foreign businesses.
If introduced, this new tax will likely apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.
The above information was kindly provided by Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: [email protected]
Kuwait
Kuwait has accepted the draft implementation of VAT and excise laws set by the Gulf Cooperation Council (GCC), which set the VAT rate at 5% in the country.
Brazil
Brazil is planning to consolidate its existing complex indirect taxes into a single Value Added Tax (VAT) regime.
The aim is to simplify the complex consumption tax regime currently in place, which in turn should cut the amount of administration hours that businesses in the country spend on calculating, reporting and paying their taxes.
UAE
The United Arab Emirates (UAE) has now published its Value Added Tax (VAT) law confirming that it will be implementing VAT at a rate of 5% from 1 January 2018.
The VAT registration threshold for all businesses has also been confirmed at Dh 375,000 (Approx. US$ 100,000).
The new tax will be levied on most goods and services however there will be exemptions on essential items such as foodstuffs and health & social care services.
The UAE is part of the six-country Gulf Cooperation Council (“GCC”) and all of these countries have agreed to implement a harmonised VAT regime by 2018. The GCC countries consist of Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman.
