The Dominican Republic, a Caribbean country, is considering putting a value-added tax on overseas digital or electronic service providers. It would join over 90 other nations that have adopted the OECD’s electronic services and destination-based VAT principles. Non-resident providers may be required to register for VAT and file monthly reports as part of a current consultation. When consumers make payments to such companies, this would replace the existing withholding VAT obligation.
Effective date: 2023