YTSNews has done some research and found that YES the Vanuatu Government can TAX social media networking websites Google and Facebook.
Following up on how Social Media can benefit the Vanuatu Government, YTSNews pulled some very interesting information from the internet especially from Pakistan.
In 2016, Financial Express published an article that the Pakistan’s government has served tax notices to social media networking websites Google and Facebook as well as video-sharing websites YouTube and Dailymotion, asking them to register by June 17, 2016 and pay for displaying specific advertisements.
The Pakistan government’s Revenue Authority also issued separate notices to YouTube, Dailymotion and a local website Mustakbil.com, in addition to Facebook and Google, asking them to register under the Punjab Sales Tax on Services Act 2012 by June 17, 2016.
“As citizens of Pakistan are regular user of all such websites while individuals and companies get their advertisements booked on such websites they are liable to be taxed. The tax is justified when Punjab based companies are availing services of such websites,” the department said.
“As you are providing taxable services in Pakistan you, therefore, are liable to comply with the rules under this jurisdiction,” it said.
The government warned that action will be taken against the websites under rules, without any further notice, in case of non-compliance of first notice.
In case of non-compliance, the Punjab government will write to the Pakistan Telecommunication Authority to place a ban on the websites violating the notices, the government said.
The above story does give the Vanuatu Government space and time to look at proper legislations to guide the Rates and Taxes Department with any future plans to TAX social media networks.
As a future source of revenue, it is something worth looking into by the Vanuatu Government and one that will also help guide and protect the online operations for businesses in Vanuatu.