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 rate Implementation for non-residents VAT registration threshold
European Union (27 member states) 17% to 27% depending on country Jan 2015 (MOSS reforms) Nil
Andorra 4.5% Jan 2013
Albania 20% Jan 2015 Nil
Algeria 9%   Nil
Angola 14% Oct 2019
Armenia 20% Jan 2018 AMD 15million
Argentina 21% Apr 2018
Australia 10% Jul 2017 AUD $75,000
Azerbaijan 12% Jan 2017
Bahamas 12% Jan 2015 BSD 100,000
Bahrain 5% Jan 2019 BHD 37,000
Bangladsesh 15% Jul 2019
Belarus 20% Jan 2018 Nil
Brazil 2% Apr 2018 Nil
Cameroon 19.5% Jan 2020 XAF 50 million
Canada Not liable
Canada, British Columbia 7% 1 July 2020 C$10,000
Canada, Quebec  9.976% Jan 2019 C$30,000
Canada, Saskatchewan 6% Jan 2019 Nil for non-residents
Chile 19% Jun 2020 Nil
China 6%-13% 2009 RMB 2,000 per transaction
Colombia 19% Jan 2018 Nil
Costa Rica 13% Aug 2020  
Ecuador 12%
Egypt 14% Sep 2016
Fiji    
Ghana 12.5% Jan 2014 GHS 200,000
Iceland 24% Nov 2011 ISK 2 million
India 18% Jul 2017 INR 2 million
Indonesia 10% Aug 2020 Nil
Israel Not liable
Japan 10% Oct 2015 JPY 10 million
Kazakhstan 12% Jan 2021
Kenya 14% TBC
Malaysia 6% Jan 2020 RM500,000
Mauritius 15% TBC
Mexico 16% Jun 2020 Nil
Moldova 20% Apil 2020 Nil
Morocco 20%
New Zealand 15% Oct 2016 NZD 60,000
Nigeria 7.5% Jan 2020 Nil
Norway 25% Jul 2011 NOK 50,000
Paraguay 10% Jan 2021 Nil
Philippines 10% Jan 2021 250,00 peso
Russia 18% Jan 2017 Nil
Saudi Arabia 15% Jan 2018 Nil
Serbia 20% Jan 2017 Nil
Singapore 7% Jan 2020 S$ 100,000
South Africa 15% Jun 2014 ZAR 1 million
South Korea 10% Jul 2015 Nil
Switzerland 7.7%   CHF 100,000 on global income
Taiwan 5% May 2017 NTD 480,000
Tanzania 18% Jul 2015 TZS 40 million
Thailand Not liable
Tunisia 3% TBC Nil
Turkey 18% Jan 2018 Nil
Uganda 18% Jan 2020 Nil
Ukraine 20% TBC
United Arab Emirates 5% Jan 2018 AED 375,000
Uruguay 22% Jan 2018 Nil
Uzbekistan 20% Jan 2020 Nil
Vietnam 10% Jul 2020