Australia: The Australian tax office (ATO) have passed urgent Goods and Services Tax (GST) measures that will allow businesses:
Australia
The Australian tax office (ATO) have passed urgent Goods and Services Tax (GST) measures that will allow businesses:
In a regular GST refund position to apply to switch from quarterly to monthly filings to accelerate GST refunds.
With cash flow difficulties to apply for deferred payment schedules with the ATO, as well as relief from late GST payments, penalties and interest liabilities.
Mexico
Mexico has confirmed that it will extend its 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, 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.
Paraguay
From 1 January 2021, 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.
Philippines
From 1 January 2021, the Philippines are proposing to introduce VAT on the supplies of electronic services by non-resident companies in the country.
Currently, foreign businesses providing digital services to consumers in the Philippines do not have to charge VAT on their sales. However, to remove the unfair advantage this gives to non-resident companies over resident providers, the Philippines government are proposing that VAT at 12% will be applied to these types of transactions.
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].
