Is it possible to claim back digital services VAT/GST?

For businesses providing digital services across borders, the possibility of recovering input tax is often a common question. Input tax refers to the tax you pay on goods and services used in your business, which you can usually claim back under certain circumstances. However, the rules for input tax recovery can be more restrictive when it comes to digital products.

Is input tax recovery available for foreign providers of digital services?

Generally, no. Many tax authorities do not allow foreign providers of digital services to recover input tax. This is because digital services are typically viewed as intangible, with sales occurring electronically, without a physical presence in the country. As a result, input tax recovery options are often limited.

Are there any exceptions?

Input tax recovery is largely country-dependent. Some countries may offer limited input tax recovery options under specific conditions, but this is the exception rather than the rule. It's important to review the VAT/GST rules for each jurisdiction where you operate to understand if any recovery options apply.

What should I do if I think I qualify for input tax recovery?

If you believe you qualify for input tax recovery, it's essential to review the local tax regulations of the country where you are selling digital services. You can reach out to our customer care team and we will be happy to help you!