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 from online digital 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.
Below is a summary of the principle countries which levy VAT or GST on e-services on non-resident providers.
Countries applying VAT/GST on e-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|
|Australia||10%||Jul 2017||AUD $75,000|
|China||6%-17%||2009||RMB 2,000 per transaction|
|Ghana||15%||Jan 2013||GHS 200,000|
|Iceland||24%||Nov 2011||ISK 2 million|
|India||16%||Jul 2017||INR 2 million|
|Japan||8%||Oct 2015||JPY 10 million|
|Kenya||16%||Sep 2013||KES 5 million|
|New Zealand||15%||Oct 2016||NZD 60,000|
|Norway||25%||July 2011||NOK 50,000|
|South Africa||14%||Apr 2014||ZAR 50,000|
|South Korea||10%||Jul 2015||Nil|
|Taiwan||5%||May 2017||NTD 480,000|
|Tanzania||18%||Jul 2015||TZS 40 million|