Spotlight on … Digital TransactionsJun-22-2020
The COVID-19 pandemic will most likely be remembered for its restriction in movement. Closing of borders, national lockdowns and social distancing have significantly reduced our physical interaction with one another. It might also be remembered for the uptake in digital measures such as online learning, conferencing and get-togethers. Therefore it comes as no surprise that there has also been a similar surge in digital transactions, with households relying on online purchases, deliveries and services.
It appears that this has not gone unnoticed, as there has recently been increased activity with regard to the taxation of digital transactions. Recently, Thailand has approved a draft VAT bill to impose VAT in digital services, the Philippines now requires online sellers to register for tax purposes and Indonesia issued guidelines on the imposition of VAT on imported digital goods and services. Safe to say that we can expect more of these developments in the future.
For more on the developments, please see: