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Taxation of E-Commerce in Southeast Asia

The digital transformation experienced over the last number of years has resulted in unprecedented global economic and societal changes. This has resulted in global debates around international tax and the digital economy and whether the existing international tax rules, developed in a “brick-and-mortar” economic environment more than a century ago, remain appropriate for the modern global economy. 

The tax implications are wide-ranging affecting both direct and indirect taxation, broader tax policy issues, and tax administration.

Addressing the tax challenges arising from digitization has been a top priority for the OECD/G20 Inclusive Framework, and a focus of the BEPS project since inception. BEPS Action 1 considered several options for addressing these challenges raised by the digital economy, covering direct and indirect tax issues around the digital economy.

In relation to indirect tax, options included requiring vendors to register and account for VAT in the jurisdiction of importation or requiring non-resident suppliers of remote digital B2C supplies to register and account for VAT in the customer’s jurisdiction. Countries in Southeast Asia have joined the global digital era in drafting and implementing new rules on e-commerce activities. This publication covers the recent developments in Cambodia, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

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Please don’t hesitate to reach out to our team for any tax support in relation to the above.

The information provided in this email is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.

Jack Sheehan
Partner, Head of Regional Tax
Jack is a Partner and Tax Leader at the firm.