Democratic Republic of Congo
In January 2024, the Democratic Republic of Congo introduced VAT at 16% on the sale of digital services by non-resident providers to local consumers. This was recently confirmed within the Finance Act 2024.
Previously, foreign businesses providing digital services to consumers in the Democratic Republic of Congo did not have to charge VAT on their sales. However, by implementing this new tax it removes the unfair advantage that this gave to non-resident companies over resident providers.
Non-resident providers will have to VAT register via a simplified registration and reporting service from the first sale they make as there is no VAT registration threshold.
This new tax will apply to a range of electronic services including advertising, streaming games, music, apps, films, e-books, e-journals, software, and internet services.
Kuwait
Kuwait’s government has recently confirmed a new four-year plan, which rules out the implementation of VAT before 2028.
Instead, the country will look at increased customs duties and excise levies on tobacco, watches, jewellery, luxury cars and yachts, to increase tax revenue. It may also extend this to unhealthy foods, including sugary drinks.
Kuwait is part of the six-country Gulf Cooperation Council (GCC), which originally agreed to implement a harmonised VAT regime of 5%. The other GCC countries include Bahrain, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
Zambia
During February 2024, the Zambian tax authority published the VAT (Cross Border Electronic Services) Regulations, 2024. These regulations clarify that from 1 January 2024, non-resident providers of digital services must register, collect, and remit VAT using a simplified registration system when selling to Zambian consumers.
Previously foreign digital service providers did not have to charge VAT on their sales to consumers in the country. However, to remove the unfair advantage that this gave to non-resident companies over resident providers, the Zambian government introduced VAT at 16% on these types of transactions from January 2024.
Non-resident digital services providers are required to VAT register if they exceed a threshold of ZMW 800,000 (approx. £23,600) per annum or ZMW 200,000 (approx. £5,800) per quarter for sales arising from Zambia. They also need to engage a local Fiscal Representative to VAT register in the country.
This new tax applies to a range of electronic services including advertising, streaming games, music, apps, films, e-books, e-journals, software, and internet services.
The above news was kindly provided by Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: [email protected].
