Barbados

Barbados cuts VAT to 15% 2020

June 8th, 2018

The new Barbadian government is to cut VAT from 17.5% to 15% on 1 January 2020. The cut is partially aimed at helping to bolster the financial services sector, which cannot recover VAT it is charged as its services are VAT exempt. The government is anxious that regulatory tightening to avoid EU blacklisting may squeeze …


Costa Rica

Costa Rica 13% VAT implementation

June 7th, 2018

Costa Rica has published a plan to introduce a 13% VAT regime to replace its existing Sales Tax. The current 13% sales tax is levied on imports and domestic sales of all goods. There are exemptions for basic foodstuffs, medicines and other essentials. Services are exempt. The country needs to widen its tax based, which means …


Aruba

Aruba raises sales tax July 2018

June 2nd, 2018

Aruba’s parliament has passed a rise in sales tax. The existing 1.5% business turnover tax will rise to 3%. The country’s health tax will rise from 2% to 3%. There will be a new crisis levy of 2.5%, taking the total turnover tax burden 6%. The new rates will apply from 1 July 2018, and …


Bahamas

Bahamas VAT rises to 12% Jul 2018

May 31st, 2018

The Bahamas is to raise its Value Added Tax rate from 7% to 12% on 1 July 2018. The country’s Minister for Finance, Peter Turnquest, announced the rise to help meet a projected budget deficit this year. Some basic foodstuffs will become zero-rated to help soften the effects of the rise. VAT was introduced in …


Aruba

Aruba raises Turnover Tax to 3%

April 7th, 2018

Aruba is to increase its Business Turnover Tax ‘Belasting op Bedrijfsomzetten’ from 1.5% to 3%. This rise will take place on 1 July 2018. The indirect sales tax is levied on the supply of goods or services in the country. Unlike VAT, it is not charged on imports.


Puerto Rico

Puerto Rico cuts Sales Tax to 7%

April 4th, 2018

Puerto Rico has announced on 2 April a new fiscal budget which includes plans to cut its Sales and Use Tax from 11.5% to 7%. The rate for professional services will be reduced to 3% from 4%.  There are also cuts to the corporate and personal income tax rates. The consumption tax rate cut is …


Quebec

Canada Quebec B2C digital services sales tax

March 30th, 2018

Quebec is to become the first Canadian province to levy its consumption tax, Quebec Sales Tax (QST),  on non-resident providers of digital services to Quebec-resident consumers. This measure is targeting foreign digital services providers such as Netflix, Amazon Prime, Google Play, Apple Music and Skype. QST is currently levied at 9.975%. In September 2017, the Canadian federal government …


United States

US Amazon to collect Sales Tax for Sellers in Washington

November 15th, 2017

Amazon will start collecting Sales Tax on behalf of its marketplace sellers in Washington state from 1 January 2018. Amazon already collects Sales Tax on its own sales, which account for approximately half of all trade on its marketplaces. Amazon is headquartered in Seattle, Washington. US Sellers are required to charge and collect and pay …