Paraguay delays VAT on e-services to Jan 2021
- May 23, 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
- 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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