18 November 2019
Ecuador is the latest country to propose a VAT charge on the sale of e-services to local consumers by non-resident businesses.
At present, non-resident businesses providing digital services in Ecuador do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage that this gives to non-resident companies over Ecuadorian resident providers, the Ecuadorian tax authorities are proposing that VAT should be charged at 12% on these types of transactions.
If accepted the measure is likely to be introduced from January 2020 and will be applied to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.
LATEST NEWS
South Africa scraps low value import VAT exemption
On 1 September 2024 the South African Revenue Service (SARS) will scrap its current import VAT exemption on low value goods. This import VAT exemption allows...
SEE MORE
LATEST NEWS
Peru mandates 18% VAT withholding by foreign digital...
From 1 October 2024, the Peruvian tax authority has confirmed that banks and credit card companies will be responsible for withholding VAT on payments for...
SEE MORE
LATEST NEWS
Ukraine proposes to lower import VAT exemption...
Ukraine is proposing a reduction to the VAT exemption on the import of low value goods into the country from €150 (approx. £127) to €45 (Approx...
SEE MORE