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 long-anticipated introduction of a new Value-Added Tax (VAT) system in Bangladesh has, once again, been hit with delays.
Due to internal pressures the Bangladesh government has reversed on a recent decision to implement the Value Added Tax and Supplementary Duty Act, 2012. The proposed VAT reform is unlikely to take place until the next elections in Bangladesh in two years time.
This news had caught many digital businesses around the world off guard as it gave them just three weeks lead-in time to update their platforms.