Cameroon has extended its ValueAdded Tax (VAT) system to cover supplies of online goods and services supplied by non-resident (foreign) companies in the country…
Cameroon
Cameroon has extended its ValueAdded Tax (VAT) system to cover supplies of online goods and services supplied by non-resident (foreign) companies in the country.
Prior to January 2020, foreign businesses providing e-commerce supplies of goods and services to both consumer and business customers did not have to charge VAT on their sales. However, in order to remove the unfair advantage that this gave to non-resident companies over resident providers, the Cameroon government have announced that VAT at 19.25% will be applied to these types of transactions.
Non-resident businesses will now be expected to register with the Cameroonian Ministry of Finance to submit monthly VAT returns.
Canada
From 1 July 2020, British Colombia will introduce sales tax (PST) on sales made by non-resident providers of digital services to consumers residing in the province.
Currently, non-resident businesses providing digital services in British Columbia do not have to charge PST on their sales. However, in an effort to remove the unfair advantage this gives non-resident companies over resident providers, the Canadian Revenue Agency has confirmed PST will be applied on these types of supplies at a rate of 7%.
This will be subject to an annual registration threshold of C$10k (approx. $7.5k) and applies to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.
Chile
From 1 May 2020, Chile will extend its Value-Added Tax (VAT) system to cover digital services supplied by non-resident (foreign) companies to consumers in the country.
Currently, foreign businesses providing digital services to consumers in Chile 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 resident providers, the Chilean government announced that VAT at 19% will be applied to these types of transactions.
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.
Fiji
Fiji is proposing to extend its Value-Added Tax (VAT) regime to apply to the sales of electronic services supplied by non-resident (foreign) companies to consumers in the country.
Currently, foreign businesses providing digital services to consumers in Fiji 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 Fiji resident providers, the Fiji government are proposing that VAT at 9% will be applied to these types of transactions.
This new tax will be collected as a withholding tax via online marketplaces and will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.
New Zealand
A wide-ranging review of New Zealand GST is underway. The authorities have sought public comments on changes to the zero rating of land, the treatment of cryptocurrencies, the treatment of fund management services, new invoicing rules and treatment of secondhand goods.
The consultation document can be found here: https://taxpolicy.ird.govt.nz/sites/default/files/2020-ip-gst-issues.pdf
The above information was kindly provided by:
- Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: [email protected]
- Essentia Global Services Ltd (UK), http://vatlife.co.uk/country-updates, contact: [email protected]
