- Global Indirect Tax Compliance for Digital Services: Providers of digital services must comply with indirect tax regulations in over 100 countries to prevent competitive distortions and align with VAT/GST objectives of taxing all consumption.
- New Tax Collection Regulations in 2024: In 2024, Laos, Zambia, Morocco, Senegal, and the Philippines imposed tax obligations on foreign remote sellers of digital services to ensure tax compliance and increase revenue.
- Philippines’ New VAT Law: Effective October 2, 2024, the Philippines implemented a 12% VAT on digital services provided by non-resident sellers, expected to generate PHP 105 billion in revenue over five years.
- Brazil’s Upcoming Tax Reform in 2026: Brazil will introduce new taxes (CBS at 8.8% and IBS at 17.7%) for non-resident digital service providers, replacing five existing taxes, requiring non-resident sellers to register, collect, and remit these taxes for both B2C and B2B transactions.
- Japan’s Shift in Tax Collection Responsibility: From April 1, 2025, Japan will require specified platform operators to collect and remit the 10% JCT on B2C digital services provided by non-resident businesses, simplifying compliance for foreign sellers.
- South Africa’s VAT Regulation Updates: Starting April 1, 2025, South Africa will limit VAT obligations for non-resident sellers to B2C digital services, excluding B2B transactions to reduce compliance costs and administrative burdens.
- Digital Platforms’ New Tax Responsibilities in Brazil: Platforms acting as intermediaries between non-resident sellers and Brazilian consumers must collect and remit CBS and IBS if they control key aspects like payment processing or delivery, starting in 2026.
- Peru’s Uncertain Digital Taxation Reforms: Peru enacted a decree requiring foreign digital service providers to register for VAT, initially effective October 1, 2024, but later delayed to December 1, with a repeal bill under consideration.
- Dominican Republic’s Withdrawal of Digital Tax Proposal: On October 19, 2024, the Dominican Republic withdrew a proposal to extend VAT to foreign digital services due to insufficient political support.
- Argentina’s Shift Away from Digital Taxation: Argentina abolished the VAT withholding requirement on payment providers processing consumer payments to foreign digital service providers on September 1, 2024, reversing its previous approach to digital taxation.
Source Forbes
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