VATLive > Blog > Paraguay > Paraguay delays VAT on e-services to Jan 2021

Paraguay delays VAT on e-services to Jan 2021

  • Jul 31, 2020 | Richard Asquith

Paraguay has announced that it will postpone the 1 July 2020 implementation date for VAT electronic and digital services for foreign providers. It will now be introduced on 1 January 2021.

Check Avalara's global VAT / GST on electronic and digital services

VAT will be collected as a withholding tax, or split payment, by credit card and other payment provider companies. These must identify a settlement between a Paraguayan consumer and a non-resident provider or intermediary platform. The charge of 10% VAT is to be remitted to the tax authority, la Subsecreta­ría de Estado de Tri­butación.

E-services, gig and sharing economy liable to VAT

The affected services are those provided via the internet, and are automatic in nature without human intervention. This indicates:

  • Downloads and streaming media
  • E-books and journals
  • Apps
  • E-learning
  • Membership and dating sites
  • Web services
  • Ride sharing

Determining if Paraguay supply

To determine if the place of consumption is Paraguay, the following data points may be considered:

  • Customer billing address
  • IP address
  • SIM card country code
  • Phone number country code

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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 is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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