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World VAT/GST News

World VAT/GST News February 2020

By February 19, 2020July 10th, 2021No Comments

Algeria has extended its Value-Added Tax (VAT) system to cover digital services supplied by non-resident (foreign) companies to consumers in the country…

Algeria

Algeria has extended its Value-Added Tax (VAT) system to cover digital services supplied by non-resident (foreign) companies to consumers in the country.

Prior to January 2020, foreign businesses providing digital services to consumers in Algeria did not have to charge VAT on their sales. However, in an effort to remove the unfair advantage this gave to non-resident companies over Algerian resident providers, the Algerian government announced that VAT at 9% will be applied on these types of transactions with immediate effect.

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.

 

Mexico

Mexico is set to extend its Value-Added Tax (VAT) system to cover digital services supplied by non-resident (foreign) companies from 1 June 2020.

At present, foreign businesses providing digital services in Mexico 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 Mexican resident providers, the Mexican government has now announced that VAT at 16% will be applied on these types of transactions from June 2020.

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.

 

Moldova

Moldova has postponed extending its Value-Added Tax (VAT) system to include digital services supplied by non-resident (foreign) companies to 1 April 2020.

At present, foreign businesses providing digital services in Moldova 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 Moldovan resident providers, the Moldovan government has announced that VAT at 20% will be applied on these types of transactions from April 2020.

Moldova has also confirmed that there is no threshold to register for non-resident suppliers and that the new tax will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.

 

Kazakhstan

Kazakhstan has postponed extending its Value-Added Tax (VAT) system to include digital services supplied by non-resident (foreign) companies to 1 January 2021.

At present, foreign businesses providing digital services in Kazakhstan 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 Kazakh resident providers, the Kazakhstan government has announced that VAT at 20% will be applied on these types of transactions from January 2021.

The new tax will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.

 

Qatar

Qatar and Oman have recently announced that they will delay the introduction of Value Added Tax (VAT) until at least 2021.

Qatar and Oman are part of the six-country Gulf Cooperation Council (“GCC”) and all of these countries had agreed to implement a harmonised VAT regime of 5% by 2018. The GCC countries consist of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates

 

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