Non-resident providers of B2C digital services: Obligation to VAT Register
Regular VATLife readers will know that in almost every edition we cover new countries adopting this rule for providers of internet based digital products. The latest countries to come on board with such an obligation for foreign suppliers of B2C e-services are as follows:
- Mexico – 16% of VAT applicable on both B2C and B2B digital services as of 1 June 2020;
- Canadian province of British Colombia– 7% of provincial sales tax (PST) will be applicable as of 1 July 2020;
- Algeria – reduced VAT rate of 9% applicable as of 1 January 2020;
- Cameroon – 19.35% of VAT should apply with effect from 1 January 2020;
The additional countries that are considering to impose VAT/GST on the B2C digital services provided by foreign suppliers are:
- Fiji – 9% of VAT (planned effective date: unknown yet);
- Ukraine – 20% of VAT (planned effective date: January 2021) subject to reaching the annual sales threshold of UAH 1m (circa USD$40,200, EUR€36,500, GBP£30,800);
- Chile – 19% of VAT (planned effective date: unknown yet but should be late 2020).
- Moldova – 20% of VAT (draft effective date: April 2020);
- Kazakhstan – 12% of VAT (draft effective date January 2021).