Vietnam B2C e-commerce withholding VAT – July 2020

From 1 July 2020, Vietnam will extend VAT to non-resident e-commerce sales to consumers. This will apply to both sales of goods and digital services. When introduced the new tax will be collected via banks and credit card companies based in the country when payment is received from their customer, and they will then be… Read More

Uzbekistan will introduce VAT on e-services in 2020

The Uzbekistan tax authority has recently confirmed that local VAT will be applicable on the sale of e-services to consumers by non-resident businesses. At present, non-resident businesses providing digital services in Uzbekistan do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage that this gives to non-resident… Read More

Indonesia proposes to introduce VAT on e-commerce sales

A VAT bill is currently being reviewed by the Indonesian government that will introduce VAT at 10% on all e-commerce goods and service transactions made by non-resident companies. At present, non-resident businesses providing e-commerce supplies to Indonesia do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage… Read More

Mexico proposes the implementation of VAT on e-commerce supplies

The Mexican senate is proposing to levy VAT at 16%, on digital e-commerce supplies provided to consumers by non-resident online platforms. At present, non-resident online platforms do not have to charge VAT on their sales in Mexico. However, in an effort to remove the unfair advantage that this gives to non-resident companies over Mexican resident… Read More

UPDATE: Hungary proposes a reduction of hotel VAT

The Hungarian government has confirmed that it will reduce the VAT rate applicable to hotel accommodation from 18% to 13%.  They have stated that this should be implemented on 1 January 2020. Most EU countries now offer a reduced VAT rate on hotel accommodation services linked to the tourism trade. The notable exceptions are Denmark… Read More

Croatia plans to cut the standard VAT rate to 24%

From 1 January 2020, Croatia plans to reduce their standard VAT rate from 25% to 24%. At the same time, they also plan to reduce the VAT rate applicable to hospitality services provided in cafes, restaurants and hotels, from 25% to 13%. This decrease is aimed at boosting the tourism sector and mirrors the VAT… Read More

UPDATE: Poland postpones implementation of VAT split payments until November 2019

Poland has postponed the implementation of the VAT split payments regime from September to 1 November 2019. The mandatory split payment regime is being introduced for companies involved in business-to-business (B2B) sales within certain sectors prevalent to VAT fraud, and will apply to transactions with a value above PLN 15,000 (approx. £3,100). Please click here… Read More