Palau GST Implementation effective 1 January 2023

Robert Pelletier
December 7, 2022

Palau is implementing a VAT style tax known as the Palau Goods and Services Tax (PGST). The PGST will be imposed at a rate of 10% and will come into effect on 1 January 2023. Businesses with an average annual taxable supply of more than $300,000 in Palau are required to register for PGST. Mandatory registration must be completed by 31 December 2022 and others may voluntarily register.

Non-resident marketplaces and suppliers of remote services, including electronic services, to non-registered persons in Palau are required to collect and remit GST.

The PGST law can be found here.

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Robert Pelletier

Robert Pelletier is a Regulatory Counsel at Sovos Compliance. Within Sovos’ Regulatory Analysis function, Robert specializes in research and analysis of global VAT and GST. Robert received a B.A. magna cum laude in Legal Studies from Quinnipiac University and a J.D. cum laude from Suffolk University Law School. Robert is a member of the Massachusetts Bar.
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