Global VAT/GST compliance impacting digital and remote services

Countries are increasingly introducing VAT, GST or similar indirect taxes on remote sales of digital services.

Generally, foreign service providers are required to register for VAT/GST purposes, collect and pay VAT/GST in the country where their customers are located.

Many countries require full VAT compliance for business-to-customer (B2C) transactions only and provide a reverse-charge mechanism for digital business-to-business (B2B). However, some countries require full VAT/GST compliance of foreign companies for BOTH B2B and B2C sales.

The correct tax treatment for remote electronic services, according to local statutes , as well as understanding of local filing procedures, may prove critical for reducing VAT compliance costs. Our skill set includes expertise in conducting such analyses internationally, including in EU countries, North and South America, the CIS and Asia.