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World VAT/GST News

World VAT/GST News January 2018

By January 22, 2018July 10th, 2021No Comments

Argentina

The Argentine government is proposing to levy VAT on consumers of digital services provided by non-resident providers.

Argentina

The Argentine government is proposing to levy VAT on consumers of digital services provided by non-resident providers.

If introduced this VAT would be settled by the consumer’s credit card provider who would withhold the VAT amounts on the transaction.

If implemented this will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services. 

Malaysia

The Malaysian tax authorities have announced that they propose to amend their current GST legislation in order to apply GST to online services supplied by non-resident (foreign) companies.

At present, foreign businesses providing digital services in Malaysia do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage this gives to non-resident companies over Malaysian resident providers, the Malaysian government is now proposing that GST at 6% will be applied on these types of transactions.

If implemented 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. 

Saudi Arabia

The Saudi Arabian tax authorities (GAZT) have announced that, under the new VAT regime introduced on 1 January 2018, the supply of digital services to consumers by non-resident providers will be subject to VAT at 5%.

This will require non-resident providers of these types of services to VAT register if they exceed the VAT registration threshold of SR 1,000,000 set in the country. 

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 above information was kindly provided by Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: contact@fiscalsolutions.co.uk.