Governments in the Americas are choosing very different ways to apply indirect taxes to digital services. This regional diversity and complexity requires a watchful eye.
Any indirect tax structure is based on the fundamental concept of ‘tax on value addition’ whereby an assessee avails credit of taxes paid on procurement and hence effectively pays the tax only on the value addition, write Nishant Shah and Harsh Shah, partners at Economic Laws Practice. Accordingly, the tax credit provisions under the indirect tax legislations form the heart of the legislation.
I strongly believe that VAT and all consumption taxes in general – the so-called goods and services taxes (GST) – have a great future ahead, writes Fernando Matesanz of Spanish VAT Services.
The Gulf Cooperation Council (GCC) Value Added Tax (VAT) Treaty (the treaty) is a landmark document for the Gulf region. It sets out the framework of a VAT system between the six GCC countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.