VAT & the cloud - understanding your VAT obligation

Tax Insights

Value Added Tax (VAT), including Goods and Services Tax (GST), and similar consumption tax systems have been implemented in more than 150 countries around the world, with other countries considering implementation in the near future. Cloud computing has also become a global phenomenon. As a result, many businesses are struggling with the VAT ramifications on the cloud services they are purchasing, providing or both. This article provides an explanation of how VAT taxes work generally and how these concepts apply to cloud transactions in various VAT-imposing jurisdictions.

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