Across the globe indirect VAT/GST rules are being amended to ensure that foreign digital suppliers become liable for the collection and remittance of these taxes.
This pace of change, from a taxation perspective, is rapid. In the first half of 2017 alone Russia, Serbia, Taiwan, India, and Australia all amended their indirect taxation laws (or in India’s case introduced a whole new system).
The Organisation for Economic Co-Operation and Development (OECD) has already approved the destination-based principle in Action 1 of its Base Erosion and Profit Shifting (BEPS) report.
The new Argentine government has wasted no time in announcing a set of taxation measures, that include significant reform to how digital service supplies from non-residents are to be taxed.
On Tuesday, October 31, it was revealed that non-residents supplying digital services – such as streaming and music downloads – will be subject to a 21% from a provisional start date of 2019.
According to local news reports the Federal Public Revenue Administration (AFIP) in Argentina will start charging taxes through credit cards to digital service platforms.