Bahrain’s VAT system means non-resident digital service suppliers must apply, collect, and remit VAT on all their B2C sales there. This compliance comes from their first sale in Bahrain due to a lack of a sales threshold.
Destination-based tax rules (e.g. VAT/GST) on cross-border digital sales are growing in popularity across the globe. Here we list a selection of prominent tax jurisdictions where such rules are in place and proposed for in the future.
Thailand's new VAT rules covering the cross-border supply of digital services came into effect on September 1, 2021. The VAT rule. A total of 69 non-resident digital businesses had registered by the first day of these new Thailand VAT rules.
Digital platforms face an ever-increasing workload and responsibility when it comes to adhering to reporting obligations from a growing number of tax administrations worldwide. The key recurring phrase used by tax administrations introducing such reporting obligations is ‘transparency’.
Israel's Ministry of Finance has included plans to extend the country's VAT system to foreign suppliers of digital services as well as the potential introduction of VAT rules for the sale of low value goods via online marketplaces.
Since June 1, 2020, foreign digital service suppliers with sales in Chile have to apply, collect and remit 19% VAT on certain digital services. In an unusual move, the Chilean Internal Revenue Service (Servicio de Impuestos Internos, or SII) recently released a list of 123 foreign digital service suppliers that have not registered for VAT in Chile since June 2020.