Compendium · Oceania · Palau
Palau: VAT on digital services
Flag and locator map are self-hosted static assets (flag-icons MIT; Natural Earth public domain). Attribution.
Not supported by the free-threshold API · Local term: VAT
Last verified: 2026-11-03
From 2023-01-01 Palau 10% PGST applies to offshore digital/remote services to consumers; compulsory registration when average annual taxable supplies exceed USD 300,000 (FIAC holders register even below) — BRT primary pages + vatcalc confirmation of remote-services scope
The live free-threshold API has not merged the proposed rules for this place yet. Unverified fields are indicative only
Spot a mistake in Palau’s rules?
Open a public correction issue on Gitea (sign in or create an account). The form is prefilled with this page’s URL and a short template, and asks for the correction label. Accepted corrections become a reviewed diff on the rules dataset — rule fixes belong in botchannels-app, not a silent change on this site.
Threshold and rates (VAT)
- Free threshold?
- No — The live free-threshold API has not merged the proposed rules for this place yet. Unverified fields are indicative only
- Amount / measure
- —
— - Window
- No threshold window (from the first sale)
- Standard rate
- —
— - Who must register
- Domestic PGST at USD 300k compulsory / USD 50k voluntary; BPT accompanies PGST registration
- Evidence of location
- Indicative only (unverified). No multi-proxy digital evidence statute confirmed on BRT pages this pass; PGST applies to supplies consumed in Palau including remote digital to consumers per secondary (vatcalc) citing regulations — OECD default for proxies
- Invoicing
- Indicative only (unverified). PGST recordkeeping/return rules for registered persons; foreign digital invoice specifics unverified
- Filing
- —
- Effective
- Region verify 2026-11-03
- Authority
- BRT PGST overview
What Botchannels returns
- Ruleset version
2026-10-22.v1- Decision summary
- Botchannels does not open free-threshold sales here. Register (or appoint a representative) before selling.
- Product class
- Digital service
- Support status
- Not supported by the free-threshold API — The live free-threshold API has not merged the proposed rules for this place yet. Unverified fields are indicative only
How to register
- Self-register online?
- See detail — See the authority pages linked in the sources
- Resident representative / fiscal agent
- —
- Regime
- —
Steps (in order)
- —
Documents
—- Official processing time
- — (unverified)
- Official fees
- —
- Portal
- https://www.palaugov.pw/executive-branch/ministries/finance/brt/pgst/
- Local bank account
- —
- Filing frequency
- —
- Payment currency
- —
- Input VAT recovery
- —
- Portal language
- —
- Penalties
- —
Firms offering this service
No verified provider links for this jurisdiction yet. Prefer the official portal and a locally licensed tax adviser.
Region verify
Facts imported on 2026-11-03. Overall confidence: secondary. A field marked indicative is unverified and is not a decision by itself.
| Field | Summary |
|---|---|
| Evidence of customer location | No multi-proxy digital evidence statute confirmed on BRT pages this pass; PGST applies to supplies consumed in Palau including remote digital to consumers per secondary (vatcalc) citing regulations — OECD default for proxies (indicative, unverified) |
| Non-resident digital tax | From 2023-01-01 Palau 10% PGST applies to offshore digital/remote services to consumers; compulsory registration when average annual taxable supplies exceed USD 300,000 (FIAC holders register even below) — BRT primary pages + vatcalc confirmation of remote-services scope (secondary) |
| Collect and remit | Registered supplier includes PGST in price and remits to BRT; platform-operator deemed-supply language reported in secondary — verify Regulations (secondary) |
| B2C invoice | PGST recordkeeping/return rules for registered persons; foreign digital invoice specifics unverified (indicative, unverified) |
| Local payment methods | No published named-rail evidence list (indicative, unverified) |
| Seller located in this place | Domestic PGST at USD 300k compulsory / USD 50k voluntary; BPT accompanies PGST registration (primary) |
Official sources
BRT PGST overview
PGST Regulations PDF
BRT — calculating taxable supplies / threshold
vatcalc — confirms offshore digital in scope
Last verified: 2026-11-03.
FAQ
- Is this tax advice?
- No. This page summarises region-verify notes for foreign digital sellers. It is not tax or legal advice