Ecuador
A new law, passed in Ecuador during December 2024, imposes VAT registration obligations for foreign providers of electronic services to consumers.
Previously VAT on these types of transactions was withheld and paid to the tax authorities (Servicio de Rentas Internas, SRI) via payment providers including banks and credit card providers. However, from December 2024, affected businesses are required to VAT register from the first sale that they make to account for VAT at 15% themselves.
This applies to a range of electronic services including:
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Streaming games
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Music
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Apps
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Films
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E-books and e-journals
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Internet services.
Niger
The West African country of the Republic of Niger has introduced VAT on the sale of digital services to consumers from 1 January 2025.
Previously, foreign businesses providing digital services to consumers in Niger did not have to charge VAT on their sales. However, to remove the unfair advantage that this gave non-resident companies over resident providers, the Government of Niger introduced VAT at 19% on these transactions.
Non-resident digital service providers will be required to register for VAT via a simplified mechanism in the country and will not have to appoint a local Fiscal Representative to do this.
Philippines
The Bureau of Internal Revenue (BIR) recently executed implementing regulations (Revenue Regulations 003-2025) which will introduce VAT on digital services provided by foreign providers to local Filipino consumers and non-VAT registered resident businesses from the 16 May 2025.
The BIR has also confirmed that they will open a new simplified VAT registration portal from 31 March, and that affected companies will not be required to register until they exceed an annual threshold of PHP 3 million (approx. £41,000).
The above news was kindly provided by Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: [email protected].
