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 …


United States

US marketplace sales tax amnesty extension

October 13th, 2017

The sales tax amnesty for online Sellers in the US has been extended to 1 November 2017. Open to online marketplace sellers, the original 17th August – 17th October amnesty programme will forgive back taxes, interest, and penalties for sellers that haven’t been collecting sales tax in states where they should. The amnesty is available in participating …


Canada

Canada rejects 5% GST on electronic services

September 29th, 2017

Canada has rejected introducing 5% federal Goods & Services Tax on electronic services to consumers such as: streaming films and music; online TV and radio; e-books, software and apps; subscriptions to member websites; and electronic journals and newspapers.  The biggest providers of these are non-resident, including Netflix, Amazon, Apple, Microsoft and Google. The tax was …


Canada

Canada GST changes

September 14th, 2017

Canada has made a number of proposals to change its Goods and Services Tax (inc Harmonised Sales Tax), including: Extend the GST liability to limited partnership investments Update GST rules on drop shipments Update the rules on GST for public transit services Modify pensions liable to GST to include those using master trust or corporations …


Costa Rica

Costa Rica VAT rise to 15%

August 20th, 2017

The government of Costa Rica has put forward a proposal for an increase in VAT from 13% to 15%. The tax rise is part of a package of changes presented to parliament last week.  It included expansion of the corporate income tax net to global income.


Puerto Rico

Puerto Rico e-services VAT

August 16th, 2017

Puerto Rico is considering introducing 15% VAT on the provision of electronic services, including streaming/downloads of games, music etc, e-books, online software, apps and member websites.  This would include foreign providers of such services, including iTunes, Google Play, Netflix, HBO and Spotify. Puerto Rico has struggled to manage its state deficit, and has attempted to replace …


Puerto Rico

Puerto Rico Sales and Use Tax

August 9th, 2017

Following last year’s abandoned attempt to introduce Value Added Tax, Puerto Rico has implemented reforms to establish another effort as it seeks to stabilise its poor fiscal position. The Legislative assembly is now considering the phased withdrawal of the existing Impuesto a las Ventas y Uso tax.  This sales and use tax on B2B sales …


United States

US reviews e-commerce Sales Tax

August 2nd, 2017

The US Treasury has said that the administration will shortly revisit Sales Tax on goods sold by out-of-state e-commerce Sellers. At present, Sellers with no physical location in another US state are not required to charge the Sales Tax of the state when the consumer is resident there. Instead, the consumer is obliged to voluntarily self-declare the …