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 the former VP Global Indirect Tax at Avalara
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