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.