Armenia
From 1 January 2022, Armenia will impose VAT on the sale of e-services to local consumers by non-resident businesses.
Prior to January 2022, non-resident businesses providing these digital services in Armenia did not have to charge VAT on their sales. However, to remove the unfair advantage this gives to non-resident companies over Armenian resident providers, the Armenian tax authorities have confirmed that VAT will be charged at 20% on these types of transactions from 2022.
This new tax will only apply to non-resident businesses with annual sales in Armenia above a calendar year threshold of AMD 115 million (approx. £170,000), and the new tax will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals, software, and internet services.
Bahrain
From 1 January 2022, Bahrain has announced that it will increase its VAT rate from 5% to 10%.
This VAT rate increase is being introduced to re-stabilise the country’s economy, which has been heavily impacted by COVID-19.
Singapore
The Singaporean tax authorities are writing to global e-commerce businesses to provide further information on how to register for the upcoming Goods and Service Tax (GST) on supplies of low value goods and non-digital (remote) services in the country.
The Singaporean government previously confirmed that from 1 January 2023, it will introduce a GST on imported sales of low value goods and non-digital services at a rate of 7%. However, it has now confirmed that this will be subject to a S$100,000 registration threshold (approx. £54,000) and has stated that impacted businesses should make an application to register by 1 October 2022 in order to be ready for the January 2023 deadline.
The above information was kindly provided by Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: [email protected].
