Do non-resident digital service providers always have to register for VAT?

No. VAT registration requirements vary significantly by country and may depend on thresholds, the type of digital service, customer location, and whether a withholding or reverse-charge mechanism applies. Some jurisdictions require registration from the first taxable supply, while others do not require non-resident providers to register at all.

Are the VAT registration thresholds in this comparison for domestic or foreign businesses?

The thresholds in this comparison are specifically for non-resident taxable persons. Domestic businesses and individual taxable persons may be subject to different registration thresholds and rules.

Which country has the highest standard VAT rate for digital services in Europe?

Hungary has the highest applicable rate among the EU countries listed, at 27%. Denmark, Finland and Sweden also have relatively high standard rates, at 25%, 25.5% and 25%, respectively.

Are VAT rates for digital services the same in every country?

No. Applicable rates vary substantially across jurisdictions, from low single-digit rates in some countries to rates above 20% in many European markets. Some countries also use GST, consumption tax, sales tax, or other equivalent indirect tax systems instead of a tax formally called VAT.

Does a country without a VAT registration threshold require registration from the first sale?

Not necessarily in every case, but the absence of a stated threshold means businesses should not automatically assume that a threshold applies. The specific registration rules, customer type, place-of-supply rules, and available collection mechanisms must be reviewed for the relevant country.

Do all African countries impose VAT on digital services provided by non-residents?

No. The table shows significant differences across African jurisdictions, including countries where a VAT rate and registration threshold are provided and others where no specific information or applicable VAT regime is identified. Businesses should therefore assess the rules in each target market individually.

VAT on Digital Services by Country: Rates, Thresholds and Registration Rules

All VAT registration thresholds are for non-resident taxable persons. This means that rules might differ for domestic and individual taxable persons operating in these markets. VAT registration thresholds by country for domestic businesses are presented separately. Also, separate articles provide more details on the VAT registration documents checklist for foreign businesses and when must a non-resident business register for VAT.

Additionally, the VAT registration threshold for Europe is presented in two separate lists: one for EU countries and one for non-EU European countries. VAT registration rules are provided in separate articles linked to each country, or as notes in the Registration Rules column

VAT on Digital Services by Country in Europe - EU Countries

VAT on Digital Services by Country in Europe - EU Countries
Country	Applicable VAT Rate	VAT Registration Threshold	Registration Rules
Austria	20%	/
Belgium	21%	/
Bulgaria	20%	/
Croatia	25%	/
Cyprus	19%	/
Czech Republic	21%	/
Denmark	25%	/
Estonia	24%	/
Finland	25.5%	/
France	20%	/
Germany	19%	/
Greece	24%	/
Hungary	27%	/
Ireland	23%	/
Italy	22%	/
Latvia	21%	/
Lithuania	21%	/
Luxembourg	17%	/
Malta	18%	/
Netherlands	21%	/
Poland	23%	/
Portugal	23%	/
Romania	21%	/
Slovakia	23%	/
Slovenia	22%	/
Spain	21%	/
Sweden	25%	/

VAT on Digital Services by Country - non-EU Countries

VAT on Digital Services by Country - non-EU Countries
Country	Applicable VAT Rate	VAT Registration Threshold	Registration Rules
Albania	20%	/
Andorra	4.5%	EUR 40,000
Armenia	20%	/
Bosnia and Herzegovina	17%	BAM 100,000 (around €51,000)
Georgia	18%	/
Iceland	24%	ISK 2 million (around €14,000)
Israel	18%	/
Liechtenstein	8.1%	CHF 100,000 (around €106,800) includes local and worldwide revenue
Moldova	20%	/
Montenegro	21%	/
North Macedonia	18%	/
Norway	25%	NOK 50,000 (around €4,600)
Serbia	20%	/
Switzerland	8.1%	CHF 100,000 (around €106,800) includes local and worldwide revenue
Turkey	20%	/
Ukraine	20%	UAH 1 million (around €19,200)
United Kingdom	20%	/

Note: All the conversion rates from domestic currencies to the euro are as of September 29, 2026.

VAT on Digital Services by Country in Asia

VAT on Digital Services by Country in Asia
Country	Applicable VAT Rate	VAT Registration Threshold	Registration Rules
Bahrain	10%	/
Bangladesh	15%	/
Bhutan*	5%	BTN 5 million (around €45,000)
Cambodia	10%	KHR 250 million (around €53,000)
China	6% to 13%, depending on the specific classification of the digital product or service	/
India*	18%	/
Indonesia	Statutory VAT rate is 12%, with an effective VAT burden of 11%	Revenue threshold: IDR 600 million (approximately USD 33,500) annually or IDR 50 million (approximately USD 2,700) monthly. Traffic threshold: 12,000 annually or 1,000 monthly visits
Japa n**	10%	JPY 10 million (around €53,800)
Jordan*	16%	Services: JOD 30,000 (around €36,300)
Kazakhstan	16%	/
Kyrgyzstan	12%	/
Laos	10%	LAK 400 million (around €15,200)
Mala ysia***	8%	RM 500,000 (around €106,200)
Maldives*	8%	MVR 1 million (around €55,400)
Mongolia	10%	/
Nepal	13%	NPR 3 million (around €16,900)
Oman	5%	/
Pakistan****	15%-16%	/
Philippines	12%	PHP 3 million (around €41,700)
Saudi Arabia	15%	/
Singapore*	9%	SGD 1 million (around €675,000)
South Korea	10%	/
Sri Lanka*	18%	LKR 60 million (around €156,700) annually or LKR 15 million (around €39,200)
Taiwan	5%	NTD 600,000 (around €16,600)
Tajikistan	15%	/
Thailan d	7%	THB 1.8 million (around €47,100)
United Arab Emirates	5%	/
Uzbekistan	12%	/
Vietnam	10% (temporarily reduced to 8% until December 31, 2026)	/

*Goods and Services Tax (GST) regime in place

** Consumption tax (Japan's equivalent of VAT) regime in place

***Sales and Service Tax (SST) regime in place

****General Sales Tax regime in place

Note: All the conversion rates from domestic currencies to the euro are as of September 29, 2026.

VAT on Digital Services by Country in Africa

VAT on Digital Services by Country in Africa
Country	Applicable VAT Rate	VAT Registration Threshold	Registration Rules
Algeria	19%	/
Angola	14%	/
Benin	18%	/
Botswana	14%	BWP 1 million (around €64,000)
Burkina Faso	18%	/
Burundi	18%	/
Cabo Verde	15%	/
Cameroon	19.25%	XAF 50 million (around €76,200)
Central African Republic	19%	/
Chad	18%	/
Ivory Coast (Côte d'Ivoire)	18%	/
Democratic Republic of the Congo	18%	/
Djibouti	10%	/
Egypt	14%	EGP 500,000 (around €8,500)
Equatorial Guinea	15%	/
Eritrea**	5%	/
Eswatini	15%	SZL 900,000 (around €48,200)
Ethiopia	15%	ETB 2 million (around €10,600)
Gabon	18%	XAF 60 million (around €91,500)
Gambia	15%	GMD2 million (around €23,000)
Ghana	15%	/
Guinea-Bissau	19%	/
Kenya	16%	/
Lesotho	15%	/
Liberia***	13%	/
Libya	/	N/A
Madagascar	20%	/
Malawi	17.5%	/
Mali	18%	/
Mauritania	16%	/
Mauritius	15%	/
Morocco	20%	/
Mozambique	16%	/
Namibia	15%	NAD 1 million (around €53,600)
Niger	19%	XOF 50 million (around €76,200)
Nigeria	7.5%	USD 25,000
Republic of Congo	18%	/
Rwanda	18%	/
São Tomé and Príncipe	15%	/
Senegal	18%	/
Seychelles	15%	/
Sierra Leone*	15%	SLE 500,000 (around €17,400)
Somalia	/	/
South Africa	15%	ZAR 2.3 million (around €123,400)
South Sudan**	/	/
Sudan	17%	/
Tanzania	18%	/
Togo	18%	/
Tunisia	/	/
Uganda	18%	UGX 150 million (around €33,700)
Zambia	16%	ZMW 800,000 (around €36,000)
Zimbabwe	15.5%	USD 25,000 or ZWG Equivalent (around €21,400)

*Goods and Services Tax (GST) regime in place

**Sales Tax regime in place

***From January 1, 2027: 18% VAT

Note: All the conversion rates from domestic currencies to the euro are as of September 29, 2026.

VAT on Digital Services by Country in South America

VAT on Digital Services by Country in South America
Country	Applicable VAT Rate	VAT Registration Threshold	Registration Rules
Argentina	21%	/	There are no mandatory requirements for registration of non-resident providers of digital services. There is no VAT threshold for digital platforms. Non-resident taxable persons who wish to register and collect Argentina VAT must appoint a local tax representative.
Bolivia	/	/
Brazil	/	/	Non-residents that provide electronically supplied services in Brazil are not required to register for VAT.
Chile	19%	/
Colombia	19%	/
Ecuador	15%	/	A non-established business is not required to be registered for tax purposes in Ecuador unless its activities trigger a permanent establishment. Non-established businesses have the choice to register for VAT in Ecuador if they provide digital services.
Guyana	14%	GYD 15 million (around €61,500)
Paraguay	/	/	Non-residents that provide B2b or B2C digital services do not need to register for VAT in Paraguay.
Peru	18%	/	From the first taxable supply
Suriname	10%	SRD 500,000 (around €11,600)
Uruguay	22%	/	Non-resident digital service providers are required to register and account for VAT for both B2B and B2C supplies in Uruguay.
Venezuela	/	/	For B2C digital transactions, no VAT is anticipated. As such, non-resident businesses that provide digital services do not need to register for VAT.

Note: All the conversion rates from domestic currencies to the euro are as of September 29, 2026.

VAT on Digital Services by Country in Central America

VAT on Digital Services by Country in Central America
Country	Applicable VAT Rate	VAT Registration Threshold	Registration Rules
Belize*	/	/
Costa Rica	13%	/	Non-resident digital service providers are expected to either register and charge VAT on sales of digital services to final consumers or request that credit cards or financial institutions withhold VAT.
El Salvador	/	/	Instead of requiring non-resident digital service providers to register, El Salvador relies on a withholding VAT system.
Guatemala	/	/	There are no specific rules regarding the taxation of the digital economy for VAT purposes in Guatemala.
Honduras*	/	/	Non-resident digital service providers are not required to register for Sales Tax in Honduras.
Nicaragua	15%	/	A non-resident provider cannot register specifically for VAT in Nicaragua, but it must register in general with the Nicaraguan tax system to account for the VAT due.
Panama	7%	/	A VAT withholding system is in place requiring the receiving party to withhold VAT on the service. Where the local consumer is not able to withhold, the non-resident must register in Panama to comply with the applicable tax obligation.

*General Sales Tax regime, Belize's equivalent of VAT, is in place

Note: All the conversion rates from domestic currencies to the euro are as of September 29, 2026.

VAT on Digital Services by Country in the Caribbean

VAT on Digital Services by Country in the Caribbean
Country	Applicable VAT Rate	VAT Registration Threshold	Registration Rules
Antigua and Barbuda*	17%	/	Non-resident digital services providers must register and account for ABST.
Bahamas	10%	/	Non-resident digital services providers must register for VAT and charge VAT on their supplies where the services are physically performed or where the benefit is experienced in the Bahamas.
Barbados	17.5%	/	Barbados requires non-resident digital service providers to register for and collect VAT, regardless of the sales amount
Dominica	/	/	Non-resident digital services providers are not currently required to register, collect, or remit local VAT
Dominican Republic**	18%	/	Non-resident digital services providers must register for ITBIS and charge ITBIS on their supplies where the services are physically performed or used in the Dominican Republic.
Grenada	10%	/	Legislation still in development (expected effective date mid-2027)
Haiti	/	/
Jamaica	/	/	The regime is expected to become fully operational in 2027, with implementation scheduled to begin in the fourth quarter of the 2026/2027 financial year
Saint Kitts and Nevis	17%	XCD 150,000 (around €47,500)
Saint Lucia	12.5%	XCD 400,000 (around €126,700)
Saint Vincent and the Grenadines	16%	XCD 300,000 (around €95,100)
Trinidad and Tobago	12.5%	TTD 600,000 (around €75,700)

*Antigua and Barbuda Sales Tax (ABST) regime in place

**Tax on the Transfer of Industrialized Goods and Services (ITBIS) in place

Note: All the conversion rates from domestic currencies to the euro are as of September 29, 2026.

VAT on Digital Services by Country in the Pacific

VAT on Digital Services by Country in the Pacific
Country	Applicable VAT Rate	VAT Registration Threshold	Registration Rules
Australia*	10%	AUD 75,000 (around €46,100)
Cook Islands	15%	NZD 40,000 (around €20,400)
Fiji	12.5%	/	Non-resident providers are not required to register and account for VAT on supplies in Fiji. Instead, the customer is required to self-account for the VAT due by way of the reverse-charge mechanism
Kiribati	12.5%	AUD 100,000 (around €61,500)
Marshall Islands	/	/	Marshall Islands does not impose VAT or GST obligations
Micronesia	/	/	Micronesia does not impose VAT or GST obligations
Nauru	/	/	Nauru does not impose VAT or GST obligations
New Zealand*	15%	NZD 60,000 (around €30,600)
Niue	/	/
Palau*	10%	USD 300,000 (around €260,000)
Papua New Guinea*	10%	PGK 250,000 (around €48,300)
Samoa**	15%	WST 130,000 (around €41,300)
Solomon Islands	/	/
Tonga***	15%	TOP 100,000 (around €36,600)
Tuvalu	/	/	Tuvalu does not impose VAT or GST obligations

*Goods and Services Tax (GST) regime in place

**Value Added Goods and Services Tax (VAGST) regime, Samoa's version of VAT, in place

***Consumption Tax (CT) regime in place

Note: All the conversion rates from domestic currencies to the euro are as of September 29, 2026.

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VAT on Digital Services by Country: Rates, Thresholds and Registration Rules

Summary

VAT on Digital Services by Country in Europe - EU Countries

VAT on Digital Services by Country - non-EU Countries

VAT on Digital Services by Country in Asia

VAT on Digital Services by Country in Africa

VAT on Digital Services by Country in South America

VAT on Digital Services by Country in Central America

VAT on Digital Services by Country in the Caribbean

VAT on Digital Services by Country in the Pacific

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