- The President of the Dominican Republic signed Decree 30-25 on January 17, 2025, requiring foreign digital service providers to charge and remit VAT to the Internal Revenue Office.
- Digital service providers were also required to register for VAT and submit transaction reports.
- The decree was supposed to be enacted in July 2025 but was repealed on March 3, 2025, for an undetermined period.
- The repeal was due to the inability to establish technical specifications and a collection system within six months.
- The government aimed to address the impact of the digital economy on local businesses and increase tax revenue from foreign providers.
- Decree 20-45 required foreign digital service providers to register for VAT, charge an 18 percent rate, and remit taxes.
- Affected services included video and music streaming, online advertising, subscription-based services, and SaaS providers.
- The repeal may be influenced by the US stance on digital service taxes on US-based companies.
- Tax collection from foreign digital service providers remains a priority but is currently on hold.
Source: 1stopvat.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
