Global VAT & GST on digital services

Countries across the world are rapidly extending Value Added Tax (VAT) and Goods and Services Tax (GST) indirect taxes to the sale of electronic / digital services by online providers and platforms to consumers.

The definition of e-services varies between jurisdictions, but typically includes income for the sale of: streaming media and games; e-books; software; apps; web hosting and other cloud services; subscriptions to membership websites; online newspapers and journals; and online gambling. It can also include broadcast (TV and radio) or satellite services, as well as online voice and data telephony services.

Global VAT GST on digital

Below is a summary of the principle countries which levy VAT or GST on e-services on non-resident providers selling to consumers. Sales to local businesses – B2B – are mostly zero-rated with the customer recording the VAT under the reverse charge.  There are some exceptions, e.g. South Africa, which Avalara can confirm on request.

Countries applying VAT/GST on digital services

Country E-services VAT rate Implementation for non-residents VAT registration threshold
European Union (28 member states) 17% to 27% depending on country Jan 2015 (MOSS reforms) Nil
Albania 20% Jan 2015 Nil
Armenia 20% Jan 2018 AMD 15million
Argentina Not liable
Australia 10% Jul 2017 AUD $75,000
Belarus 20% Jan 2018 Nil
Brazil 2% Apr 2018 Nil
Canada Not liable
China 6%-17% 2009 RMB 2,000 per transaction
Colombia 19% Jan 2018 Nil
Ghana 15% Jan 2013 GHS 200,000
Iceland 24% Nov 2011 ISK 2 million
India 16% Jul 2017 INR 2 million
Israel Not liable
Japan 8% Oct 2015 JPY 10 million
Kenya 16% Sep 2013 KES 5 million
Malaysia Not Liable
New Zealand 15% Oct 2016 NZD 60,000
Norway 25% July 2011 NOK 50,000
Russia 18% Jan 2017 Nil
Saudi Arabia 5% Jan 2018 SAR 375,000
Serbia 20% Jan 2017 Nil
Singapore 7% Jan 2020 S$ 100,000
South Africa 14% Jun 2014 ZAR 50,000
South Korea 10% Jul 2015 Nil
Switzerland 7.7% CHF 100,000 on global income
Taiwan 5% May 2017 NTD 480,000
Tanzania 18% Jul 2015 TZS 40 million
Thailand Not liable
Turkey 18% Jan 2018 Nil
United Arab Emirates UAE 5% Jan 2018 AED 375,000
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