Indonesia: On 1 April 2020, the Indonesian tax authorities introduced VAT at 10% on all e-commerce goods and service transactions made by non-resident companies.
Indonesia
On 1 April 2020, the Indonesian tax authorities introduced VAT at 10% on all e-commerce goods and service transactions made by non-resident companies.
Prior to this, non-resident businesses providing e-commerce supplies to Indonesia did not have to charge VAT on their sales. However, to remove the unfair advantage that this gave to non-resident companies over Indonesian resident providers, the Indonesian government introduced VAT at 10% on these types of transactions.
The tax authorities also confirmed that the new tax must be charged and collected by the non-resident suppliers, who will have to register for VAT in the country.
Russia
The Russian government recently proposed that it will gradually reduce its Value Added Tax (VAT) rate from 20% to:
18% from 2021;
15% from 2023; and
12% from 2025.
Tunisia
Tunisia is proposing to introduce a new e-service tax at 3% on the sale of electronic services to consumers by non-resident businesses.
Due to controls in place by the Tunisian government, non-resident businesses cannot VAT register and apply VAT on their sales. However, to remove the unfair advantage this gives to non-resident companies over Tunisian resident providers, the Tunisian government are planning to introduce the new e-service tax at 3% on these types of transactions.
If introduced this new tax will 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].
