A collection of the brief insights throughout March 2024 of the type provided on an ad hoc basis in our Latest digital tax byte update.
27 March 2024 - Moratorium on e-commerce just a temporary stay?
Following the recent extension at the World Trade Organisation (WTO) of the moratorium on duties being applied to downloading, streaming and other e-commerce transmissions, there has been much said about the extension being only for two years. It seems likely that some WTO members anticipate applying duties to some items from 2026.
Some WTO members seem likely to continue to apply exemptions while others are keen to apply duties from 2026 when there will be another vote on the moratorium.
Those keen to apply duties will need to decide which e-commerce transmissions should be in scope and face duties. The arguments for the application of duties to other goods and services, to protect local interests and manufacture, do not seem to be the same as a need for digitally delivered services. This OECD publication highlighted that there is no clear distinction between digital products and services while there are a number of Regional Trade Agreements with clauses on the non-imposition of customs duties on electronic transmissions (NICDET provisions). However, the impact could be significant and a lack of consistency on what countries are doing in relation to different products will surely make business more complex..
