Ecuador is the latest country to propose a VAT charge on the sale of e-services to local consumers by non-resident businesses…
Ecuador
Ecuador is the latest country to propose a VAT charge on the sale of e-services to local consumers by non-resident businesses.
At present, non-resident businesses providing digital services in Ecuador 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 Ecuadorian resident providers, the Ecuadorian tax authorities are proposing that VAT should be charged at 12% on these types of transactions.
If accepted the measure is likely to be introduced from January 2020 and will be applied to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.
Paraguay
From 1 January 2020, Paraguay will extend VAT to non-resident sales of digital services to consumers in the country.
When introduced the new tax at 10% will be collected via payment providers (such as banks and credit card companies) when the customer makes the payment. The payment providers will then be responsible for paying this over to the Paraguayan tax authorities.
This 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: [email protected].
