E-commerce

FTI Global VAT Compliance is your partner when you deal with Indirect Taxes in multiple jurisdictions. Besides experience in the greater European area, we support our clients globally in dealing with VAT/GST and customs aspects of a Global e-commerce marketplace.

The Global VAT and GST compliance market is undergoing several landmark changes:

  1. Cross border e-Commerce scheme in China since 1 April 2016;
  2. Service Tax (subsumed by GST) on e-Services/OIDAR in India from 1 December 2016;
  3. GST Introduction in India on 1 July 2017;
  4. VAT one e-Services in Russia, New Zealand and Australia in 2017;
  5. HMRC measures against non-EU sellers (with a focus on Chinese sellers) selling via marketplaces such as Amazon without being VAT compliant in 2017;
  6. Changes to EU VAT system for B2C sales of digital services in the EU in 2018;
  7. Extension of VAT MOSS single registration to goods sold by non-EU sellers in 2021.

VAT and GST compliance for e-Commerce and goods

e-Commerce sales of goods and services are becoming more and more truly global.  The large marketplaces take away the borders and enable sellers to reach customers everywhere.  Examples of clients that we aupport are:

  • Asian online businesses selling goods into the EU and surrounding markets (e.g. Switzerland and Norway ) either directly or via local marketplace (e.g. Amazon FBA);
  • European online businesses selling goods into the Asia Pacific with a main focus on the Chinese market reached via local marketplaces (e.g. T-Mall/Alibaba);

VAT and GST compliance for e-Commerce and electronic services

An increasing number of countries is taxing VAT or GST on electronic servoces supplied from abroad to consumerts.  As of 2015 the EU applies the Mini One Stop Shop which enables trader to register in one country and report and remit VAT for the entire EU.  FTI Global VAT Compliance files EU VAT MOSS returns in various jurisdictions throughout the EU.

Also countries outside the EU have implemented a mechanism to charge VAT, GST or similar transaction taxes on supplies made from other countries to private individuals.  FTI Global VAT Compliance can help you comply in all of these jurisdictions.

Country VAT rate Levy eServices from Type of VAT  registration Threshold
Albania 20% 1 January 2015 Standard VAT registration and fiscal representative None
Australia 10% 1 July 2017 GST on eServices AU$ 75,000
Belarus 20% 1 January 2017 VAT on eServices None
EU Various 1 July 2003 VAT MOSS None
Ghana 15% 1 January 2016 VAT on digital services  GHS 120,000
Iceland 24% and 11%
for ebooks
1 November 2011 Standard VAT registration  1 million ISK
India 15% 1 December 2016 GST on OIDAR Services (per 1 July 2017) None
Japan 8% 1 October 2015 Standard VAT registration (B2B & B2C) JPY 10 million
New Zealand 15% 1 October 2016 GST on eServices NZ$ 60,000
Norway 25% 1 July 2011 VAT on eServices NOK 50,000
Russia 18% 1 January 2017 VAT on eServices None
Serbia 20% 1 April 2017 VAT on eServices None
South Africa 14% 1 July 2014 VAT on eServices (B2B & B2C) 50.000 ZAR
South Korea 10% 1 July 2015 Standard VAT registration None
Switzerland 8% 1 January 2010 Standard VAT registration and fiscal representative CHF 100,000 (after 1 January 2018, global revenue not only CH)
Taiwan 5% 1 July 2017 Business Tax NTD 480,000