Indonesia : The Indonesian tax authorities have postponed the introduction of VAT at 10% on all e-commerce goods and service transactions made by non-resident companies to 1 August 2020.
Indonesia
The Indonesian tax authorities have postponed the introduction of VAT at 10% on all e-commerce goods and service transactions made by non-resident companies to 1 August 2020.
Currently, non-resident businesses providing e-commerce supplies to Indonesia do not have to charge VAT on their sales. However, to remove the unfair advantage that this gives to non-resident companies over Indonesian resident providers, the Indonesian government will introduce VAT at 10% on these types of transactions from August 2020.
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.
Mauritius
Mauritius is set to extend its 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 Mauritius do not have to charge VAT on their sales. However, to remove the unfair advantage this gives to non-resident companies over Mauritian resident providers, the Mauritian government are proposing that VAT at 15% will be applied to these types of transactions.
This new tax will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.
Thailand
Thailand is set to extend its 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 Thailand 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 Thai resident providers, the Thai government are proposing that VAT at 7% will be applied to these types of transactions.
This new tax will be subject to a 1.8m Baht (approx. £47k) annual threshold and 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].
