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The latest SaaS tax regulation updates around the world

Software grows - and is growing - at a scale that no tangible products can grow. That’s because SaaS is essentially global as soon as you create the business. 

Sounds dreamy, doesn’t it? Until the realization creeps in that you have to deal with a huge (and we mean, huge) variety of tax regulations around the world… oh, and they change all the time too.  

Tax compliance can almost definitely be difficult to get your head around, let alone actually stay on top of as an expanding business. We’ve created a guide on everything you need to know about SaaS sales tax, but thought we’d keep you up to date with regular updates via our blog. 

Here’s what we’ve got for you this quarter.

Increase in rate:

Bahrain: from 5% to 10% 

Indonesia: from 10% to 11%

Thailand: intends to increase VAT rate from 7% to 10%

Singapore: staggering an increase in GST rate:

  • (i) 7% to 8% with effect from 1st January 2023
  • (ii) 8% to 9% with effect from 1st January 2024

Decrease in rate:

Romania: reduced VAT rate on e-books to 5% 

Latvia: reduced VAT rate on e-books to 5% from 21%

Tajikistan: reduced VAT to 15% from 18% on cashless transactions

Laos: reduced VAT to 7% from 10%

Bahamas: reduced VAT to 10% from 12%

Moldova: exempts e-books from VAT

VAT implementations:

Ukraine: introduced VAT on electronic services provided by non-resident suppliers

Armenia: introduced VAT of 20% to non-resident suppliers of electronic/digital services

Kazakhstan: introduced VAT on foreign companies engaged in the electronic trade in goods and services

Cambodia: introduced VAT of 10% to non-resident providers of digital services

Kyrgyzstan: introduced 12% VAT on digital services for non-residents

Philippines: introduced 10% tax on digital services for non-residents

Other:

Slovenia: introduced that non-residents may no longer charge VAT on local B2B supplies

Austria: reduced VAT rates on hospitality, publications (e-books) until December 31st, 2021

New registrations for Paddle:

Nigeria: 7.50% (B2B and B2C)

Oman: 5% (B2B and B2C)

Manitoba: 7% (B2C)

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