PwC flags unanswered questions in budget’s digital tax plans

PwC has warned that sev­er­al de­tails of the Gov­ern­ment’s pro­posed tax changes re­main un­re­solved, in­clud­ing how Trinidad and To­ba­go in­tends to col­lect VAT on dig­i­tal ser­vices sup­plied by for­eign com­pa­nies with­out cre­at­ing ad­di­tion­al costs or com­pli­ance bur­dens for busi­ness­es.

In its analy­sis of the 2026-2027 Na­tion­al Bud­get, PwC said the pro­posed stan­dard-rat­ing of dig­i­tal and re­mote ser­vices sup­plied by non-res­i­dent providers, ef­fec­tive March 1, 2027, would re­quire clear rules on which trans­ac­tions are cov­ered, how cus­tomers’ lo­ca­tions are de­ter­mined and how the tax would ap­ply to busi­ness-to-busi­ness trans­ac­tions.

The mea­sure is pro­ject­ed to gen­er­ate $18 mil­lion in rev­enue.