Peru
From 1 October 2024, the Peruvian tax authority has confirmed that banks and credit card companies will be responsible for withholding VAT on payments for digital or intangible services by Peruvian consumers to non-resident suppliers.
Peru is introducing this new tax at 18% to remove the unfair advantage that non-resident companies have over resident suppliers who charge VAT on their sales.
This will apply to many services including software, access to social networks, streaming or download of media, digital newspapers and magazines, advertising, online auctions, access to websites, and interactive training.
South Africa
On 1 September 2024 the South African Revenue Service (SARS) will scrap its current import VAT exemption on low value goods.
This import VAT exemption allows imports up to a value of 500 rand (approx. £21) to be cleared into South Africa VAT free, and once removed it will mean all imported goods will be subject to VAT at 15% when entering the country.
The SARS hope that the removal of this exemption will eliminate the unfair advantage it gives to businesses outside of South Africa over resident providers who must charge VAT when selling the same low value goods in country.
The above news was kindly provided by Fiscal Solutions (UK), www.fiscalsolutions.co.uk; contact: [email protected].
