Global VAT & GST on digital services

Andorra implemented Value Added Tax on non-resident providers of digital and electronic services on 1 January 2013.

There is a VAT registration threshold of €40,000 taxable sales per annum. Taxpayers must produce VAT invoices for their customers. B2B transactions should be reported via the reverse charge – the customer is liable to report the VAT due.

The Bahamas introduced Value Added Tax on 1 January 2015. At the time, it included digital or electronic services in the VAT net. Foreign providers must levy VAT on local sales.

There is a VAT registration threshold of BSD 100,000. A trading licence to sell e-services is required.

B2B transactions are the responsibility of the business customer. But the provider is still required to be VAT registered and report the transaction. VAT invoices for B2C transactions come into the form or receipts only. B2B transactions require a full VAT invoice.

Ghana introduced Value Added Tax on digital services on 1 January 2014. This includes obliging non-resident providers to VAT register with the Commissioner General for supplies of digital or electronic services to local consumers.

There is a VAT registration threshold of GHS 120,000. Providers are obliged to produce VAT invoices for their supplies to Ghanaian consumers.

Serbia imposed Value Added Tax on digital service on 1 January 2017.

VAT registrations

This included requiring foreign providers to VAT register immediately with no registration threshold.

Taxpayers are not obliged to issue VAT invoices to consumers. Non-residents must appoint a fiscal representative that is responsible for the correct VAT calculations, reporting and filing for VAT returns. The representative is liable for any unpaid VAT.

What services are liable?

Serbia requires the payment of VAT on income from the following services:

• Online video, music and gaming, including downloads
• Webpages and associated storage
• Online and similar electronic remotely provided software
• E-learning
• Data, content, text and information provided remotely and automatically

Value Added Tax on digital services was introduced into Tanzania on 1 July 2015.

Digital services liable to VAT

The following electronic or digital services are taxable in Tanzania:

• Streaming media and gaming. Including downloads
• Online software
• E-learning
• Website services and hosting
• Other content, images etc provided automatically

VAT compliance

There is no VAT registration threshold for non-resident providers selling to Tanzanian consumers. Foreign providers must appoint a local fiscal representative who is responsible for VAT compliance, reporting and payments.

VAT invoices are due for all consumer sales. B2B supplies are also the responsibility of the provider, and there is no reverse-charge exemption from the obligation to VAT register or invoice.