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EAEU zone agrees digital services VAT on location of consumer

Eurasian Economic Union to switch place of taxation to country of the consumer from 1 January 2024

The members of EAEU have agreed to transition the place of taxation on cross-border digital services to the country of residence of the consumer. At present, VAT is due in the country of establishment of the provider or intermediary platform / marketplace.

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The members of Eurasian Economic Union are:

  • Armenia;
  • Russia;
  • Belarus;
  • Kazakhstan; and
  • Kyrgyzstan.
  • Observer status:
    • Cuba;
    • Moldova; and
    • Uzbekistan.

Double taxation of electronic services

Most of these countries follow the OECD VAT guidelines for e-invoicing, and levy VAT if the consumer is resident in their jurisdiction.  This has been creating cases of double taxation between member states, hence this change. Russia VAT on e-services

Check our global VAT on digital services tracker.

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Asia Pacific VAT on digital services

Comments (click for details) Rate Date Threshold Comments
Australia 10% Jul 2017 AUD $75,000
Azerbaijan 12% Jan 2017
Armenia 20% Jan 2022 AMD 115million
Bangladesh 5% - 15% Jul 2019 B2B and B2C
Bhutan 7% Jul 2021 Nu 5million
Cambodia 10% Mar 2022 KHR 250m
China 6%-13% N/a Nil Withholding VAT; B2B and B2C
Fiji 9% TBC FJD 300,000
India 18% Jul 2017 -
Indonesia 11% Aug 2020 IDR600m or 12k customers
Japan 10% Oct 2015 JPY 10 million
Kazakhstan 12% Jan 2022 Nil
Kyrgyzstan 12% Jan 2022 Nil
Laos 7% Feb 2022 LAK 400m
Malaysia 6% Jan 2020 RM500,000
Nepal 13% Jul 2022 Rupees 2m Also 2% DST
New Zealand 15% Oct 2016 NZD 60,000
Pakistan 2% Sep 2021 Nil Marketplace Withholding VAT
Philippines 12% Jul 2023 ? P 3million
Singapore 7% Jan 2020 S$ 100,000
South Korea 10% Jul 2015 Nil
Taiwan 5% May 2017 NTD 480,000
Tajikistan 18% Jan 2021
Thailand 7% Sep 2021 1.8m Baht
Uzbekistan 15% Jan 2020 Nil
Vietnam 10% Dec 2020

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