Paraguay B2C e-services withholding VAT – January 2020

18 November 2019

From 1 January 2020, Paraguay will extend VAT to non-resident sales of digital services to consumers in the country.

When introduced the new tax at 10% will be collected via payment providers (such as banks and credit card companies) when the customer makes the payment. The payment providers will then be responsible for paying this over to the Paraguayan tax authorities.

This will be applied to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.

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