From April 2021, the Canadian province of British Columbia imposed Provincial Sales Tax (PST) at 7% on income earned by…
Canada
From April 2021, the Canadian province of British Columbia imposed Provincial Sales Tax (PST) at 7% on income earned by non-resident providers of e-services selling to consumers. The province also intends to implement Goods and Services Tax on these types of sales from 1 July 2021.
Previously, non-resident businesses providing digital services in British Columbia did not have to charge PST on their sales. However, to remove the unfair advantage this gives to 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 new tax will only apply to non-resident businesses with annual sales in British Columbia above a threshold of C$10,000 (approx. £6,000) and will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.
Oman
In April 2021, Oman became the fourth member of the Gulf Arab states to implement a regional VAT regime.
Oman is part of the six-country Gulf Cooperation Council (GCC) and all of these countries had agreed to implement a harmonised VAT regime of 5%. The GCC countries consist of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
Thailand
From September 2021, Thailand has confirmed it will introduce VAT at 7% on sales of electronic services by non-resident providers to consumers in the country.
At present, foreign businesses providing digital services in Thailand do not have to charge VAT on their sales. However, to remove the unfair advantage this gives to non-resident companies over Thai resident providers, the Thai government will implement VAT at 7% on these types of transactions.
This 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].
