2024 Budget proposal includes VAT on non-resident providers of digital services
Zambia’s Ministry of Finance has published its 2024 budget proposal. This includes plans to require foreign providers of digital or electronic services to consumers to VAT register, charge and remit taxes to Zambia Revenue Authority.
VAT Calc’s global VAT and GST on digital services tracker to see which other countries have introduced indirect taxes on electronic services to consumers.
What digital services liable to Zambian VAT?
Whilst no details on the supplies subject to VAT will be, it is likely to include the following:
- Software licensing
- Database services
- Online telecoms services
- E-learning
- Streaming and download media
- Mobile apps
- E-books and newspapers
- SaaS and cloud-based software
- Hosting and other internet services
- Online advertising
- Membership to dating memberships
- Online gaming
- Search engine services
Marketplace liabilities
It would not just be the responsibility of the provider, but potentially also any intermediary or marketplace selling the service of an underlying supplier – termed a network orchestrator.
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 |
| Palau | 10% | Jan 2023 | $300,000 | |
| Philippines | 12% | Jan 2024 ? | P 3million | |
| Singapore | 7% | Jan 2020 | S$ 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 | – |
