United States

US, Mexico & Canada e-commerce sales tax & duty thresholds

October 12th, 2018

As part of the NAFTA renegotiation completed on 1 Oct 2018, the US has secured a rise in the duty-free threshold for e-commerce sales from US marketplaces to consumers in Mexico and Canada. The new NAFTA replacement deal is known as United States-Mexico-Canada Agreement (USMCA). Currently, US online sellers, including eBay and Amazon, shipping to …


United States

US Congress bill to curb out-of-state Sales Tax Jan 2019

September 19th, 2018

US legislators in Congress are to consider two bills providing for a consistent imposition of the ‘economic nexus’ Sales Tax test, including a $10million annual sales threshold. This follows the Supreme Court South Dakota vs Wayfair, Inc ruling which freed states to oblige out-of-state e-commerce sellers to collect state Sales Tax. Only South Dakota and Maine prohibit …


Mexico

Mexico reintroduces border reduced VAT

July 7th, 2018

Mexico is planning to reintroduce a reduced VAT rate in the 19 mile border area next to the US border. The rate for standard supplies will be 8% compared to the regular 16%. Until 2013, there was a reduced VAT rate of 11% in operation near the border.


Worldwide

Global VAT changes 1 July 2018

July 1st, 2018

Below is a summary of major VAT and GST changes that come into effect on 1 July 2018: Australia drops GST-free levy on small goods, and requires non-resident e-commerce companies to register if over the threshold of AU$ 75,000 per annum Bahamas raises VAT to 12% The introduction of Polish Split Payments Hungary introduces live …


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%, taking the total turnover tax burden 6%. There will be a new crisis levy of 2.5%. 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 …