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2020 global VAT rate & legislation changes

  • Jan 1, 2020 | Richard Asquith

Global VAT and GST changes 2020

Covid-19 VAT rate cuts

Countries have looked to VAT / GST to help support businesses and consumers during the Coronavirus pandemic crisis. Use Avalara's Covid-19 VAT rate tracker to keep up with the latest changes.

January 2020 VAT rate changes

Below is a summary of the main January 2020 VAT rate changes announced from around the world. In addition, there are several cuts to EU e-book VAT rates at the same time.

If you would like to be kept up-to-date on all VAT rate changes, sign-up to VAT Voice, our monthly webex of rate and legislation changes from around the world.

Country 2020 VAT rate change
Albania

Implements VAT e-invoicing

Albania is to require all taxpayers to submit /vatlive/en/vat-news/2016-vat-rate-changes B2B and B2C invoices in real-time from 1 January 2020...

Algeria

VAT on foreign electronic services

The Algerian Finance Law for 2020 includes a number of VAT updates

Austria

Marketplace VAT liabilities

Austria is to become the latest EU country to propose making sharing economy online marketplaces responsible for the VAT of third-parties on their platforms...

Austria

VAT registration threshold rise

Austria is proposing to increase its VAT registration threshold from €30,000 to €35,000 from January 2020. Non-resident businesses must VAT register...

Barbados

Hotel accommodation to rise from 7.5% to 10%

The Barbados 2019 national budget includes a range of VAT changes...

Bulgaria

Withdraws foreign VAT registration threshold

Bulgaria is to set to zero sales its annual VAT registration threshold for non-resident businesses from 1 January 2020...

Canary Islands

VAT rise proposal to 7%

The Canary Island has proposed in its 2020 budget to reverse the 2019 Canary Islands VAT (‘IGIC’) rise...

Chile

19% VAT on non-resident providers of digital services

The Chilean Congress is to consider a bill to levy VAT on foreign electronic and digital services sold to consumers...

Croatia

13% reduced rate on hospitality sector

Croatia is to reduce its Value Added Tax rate on the hospitality sector from 25% to 13%...

European Union

VAT 4 Quick Fixes

The EU VAT regime,  is due to undergo huge reforms over the next few years...

France

Introduces marketplace seller VAT liabilities

France is to require online marketplaces to verify the Value Added Tax status of foreign sellers using their platforms from January 2020...

Germany

Raises VAT registration threshold

Germany is to raise its VAT registration threshold from €17,500 to €22,000 from 1 January 2020...

Hungary

Reduced rate on hotel accommodation drops to 5%

The Hungarian parliament has approved a range of tax cuts for 2020, including the following VAT amendments...

India

E-invoice roll out

The Indian Goods & Services Tax Council has proposed a revised plan for the roll out of live e-invoice reporting from 2020...

Indonesia

Levies VAT on foreign e-commerce 2020

Indonesia is planning to bring non-resident e-commerce sellers into the VAT net. Legislation is being completed for foreign providers of goods and services...

Malaysia

6% Services Tax on foreign e-services providers

Malaysia has ratified the imposition of 6% sales tax on digitial supplies by non-resident providers to local consumers...

Nigeria

Standard rate rises from 5% to 7.5%

The Nigerian government has proposed raising the Value Added Tax standard rate from 5% to 7.5%...

Nigeria

VAT withholding on e-commerce

Nigeria is considering becoming the latest country to introduce a withholding VAT regime on e-commerce...

Norway

Introduces mandatory SAF-T

Mandatory SAF-T reporting will be introduced for businesses from 1 January 2020...

Norway

Scraps low value import VAT exemption

Norway has proposed a simplified VAT registration process for online sellers with imports to consumers...

Paraguay

Extends 10% VAT to e-service providers

Paraguay has enacted a tax provision to impose VAT on sales of electronic services to its consumers...

Sri Lanka

Reduces VAT rate from 15% to 12.5%

Sri Lanka’s government has announced plans to reduce its Value Added Tax standard rate from 15% to 8% most goods on 1 December 2019...

Singapore

7% GST on non-resident providers of digital services

Singapore has updated its plans to levy its 7% Goods & Services Tax on B2B digital services provided by non-residents to consumers from 1 January 2020...

Taiwan

E-invoice for foreign digital service providers

Non-resident online sellers of digital services to Taiwanese consumers will be required to issue cloud-based government uniform invoices (GUI)...

Thailand

Thailand foreign e-commerce VAT 2020

Thailand is to underake a further attempt to implement Value Added Tax collection obligations on non-resident sellers of goods or services to local consumers...

Uganda

Extends 18% VAT to foreign e-service providers

Uganda has clarified the requirements for foreign providers of digital services to levy 18% VAT on sales to local consumers...

United States

Sales tax changes for foreign sellers and marketplaces

Following the 2018 South Dakota vs Wayfair ruling at the US Supreme Court, most of the 45 US states which impose sales tax have updated their rules...

Uzbekistan

Imposes 15% VAT foreign e-service providers

Uzbekistan is to become the latest country to require foreign providers of electronic services to charge Uzbek VAT at 20%...

Zimbabwe

Cuts VAT from 15% to 14.5%

The Zimbabwean 2020 budget includes a number of proposed changes to the VAT regime....


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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