Three more countries join the ESS tax trend

Following in the footsteps of the UK, Europe, Australia, Japan and New Zealand, three more countries are introducing tax on electronically supplied services…

Further to my recent article regarding the growing trend for countries to apply VAT/GST on electronically supplied services made by non-resident businesses to local consumers, three more countries have announced the introduction of the scheme for the first half of 2018:

Belarus and Columbia both plan to introduce the change to the way these supplies are taxed with effect from 1 January 2018, with Brazil following on 1 April 2018.

None of the three countries have specified a VAT registration threshold, so businesses should review their position immediately in order to register ahead of the deadlines, ensure compliance and factor these changes into their 2018 pricing model. This will be particularly important in Columbia and Belarus where the VAT rate is up to 19% and 20% respectively. Brazil is introducing the tax at a much lower rate of 2%.

With the number of countries increasing and over 15 countries already applying VAT/GST (in addition to the MOSS scheme that covers all 26 EU countries), it is important that businesses involved in these rulings conduct a thorough review of their international affairs.

For assistance with this review or any queries regarding whether your business could be affected by these rules, please contact Sean:

Sean O'Sullivan
Tax Manager
Direct: +44 (0)20 7430 5966 

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