Global VAT & GST on digital services

Countries across the world are rapidly extending Value Added Tax (VAT) and Goods and Services Tax (GST) indirect taxes to the sale of electronic / digital services by online providers and platforms to consumers.

The definition of e-services varies between jurisdictions, but typically includes income for the sale of: streaming media and games; e-books; software; apps; web hosting and other cloud services; subscriptions to membership websites; online newspapers and journals; and online gambling. It can also include broadcast (TV and radio) or satellite services, as well as online voice and data telephony services.

Check Avalara's Digital Services Tax global tracker, which monitors proposed and implemented turnover income taxes on digital services.

Below is a summary of the principle countries which levy VAT or GST on e-services on non-resident providers selling to consumers. Sales to local businesses – B2B – are mostly zero-rated with the customer recording the VAT under the reverse charge.  There are some exceptions, e.g. South Africa, which Avalara can confirm on request.

Countries applying VAT/GST on digital services

Country E-services VAT rateImplementation for non-residentsVAT registration threshold
European Union (27 member states)17% to 27% depending on countryJan 2015 (MOSS reforms)Nil
Andorra4.5%Jan 2013
Albania20%Jan 2015Nil
Algeria9% Nil
Angola14%Oct 2019
Armenia20%Jan 2018AMD 15million
Argentina21%Apr 2018
Australia10%Jul 2017AUD $75,000
Azerbaijan12%Jan 2017
Bahamas12%Jan 2015BSD 100,000
Bahrain5%Jan 2019BHD 37,000
Bangladesh15%Jul 2019
Belarus20%Jan 2018Nil
Brazil2%Apr 2018Nil
Cameroon19.5%Jan 2020XAF 50 million
Canada5%Jul 2021C$30,000
Canada, British Columbia7%April 2021C$10,000
Canada, Quebec 9.976%Jan 2019C$30,000
Canada, Saskatchewan6%Jan 2019Nil for non-residents
Chile19%Jun 2020Nil
China6%-13%2009RMB 2,000 per transaction
Colombia19%Jan 2018Nil
Costa Rica13%Aug 2020 
Ecuador12%Sept 2020
Egypt14%Sep 2016
Ghana12.5%Jan 2014GHS 200,000
Iceland24%Nov 2011ISK 2 million
India18%Jul 2017INR 2 million
Indonesia10%Aug 2020Nil
IsraelNot liable
Japan10%Oct 2015JPY 10 million
Kazakhstan12%Jan 2021
Kenya14%March 2021KES 5million
Malaysia6%Jan 2020RM500,000
Mexico16%Jun 2020Nil
Moldova20%Apil 2020Nil
New Zealand15%Oct 2016NZD 60,000
Nigeria7.5%Jan 2020Nil
Norway25%Jul 2011NOK 50,000
Oman5%Apr 2021OMR 35,000
Paraguay10%Jan 2021Nil
Philippines10%Jan 2021250,00 peso
Russia20%Jan 2017Nil
Saudi Arabia15%Jan 2018Nil
Serbia20%Jan 2017Nil
Singapore7%Jan 2020S$ 100,000
South Africa15%Jun 2014ZAR 1 million
South Korea10%Jul 2015Nil
Switzerland7.7% CHF 100,000 on global income
Taiwan5%May 2017NTD 480,000
Tajikistan18%Jan 2021 
Tanzania18%Jul 2015TZS 40 million
Thailand7%Sep 20211.8m Baht
Turkey18%Jan 2018Nil
Uganda18%Jan 2020Nil
Ukraine20%Jan 2022
United Arab Emirates5%Jan 2018AED 375,000
United StatesUp to 10%2018+Varies by state
Uruguay22%Jan 2018Nil
Uzbekistan20%Jan 2020Nil
Vietnam10%Jul 2020
Zimbabwe14.5%Jan 2020Nil