A new Pennsylvania law will improve the state‘s tax appeals process by creating formal settlement conferences at the Board of Finance and Revenue (BFR). A designated settlement officer will now oversee these conferences to help taxpayers and the Department of Revenue reach agreements.

The bottom line: Companies undergoing an audit in the state of Pennsylvania can request a settlement conference or be called into one by the state’s department of revenue or the BFR. Participation is optional for all parties.

Nova Scotia will reduce its Harmonized Sales Tax (HST) rate from 15% to 14% on April 1, 2025. The provincial portion will decrease from 10% to 9%.

The bottom line: The government has published transitional rules explaining which rate applies to transactions occurring around the implementation date. Businesses should ensure any necessary system changes and invoicing updates are made before April 1, 2025.

Starting June 1, 2025, the Philippines will charge a 12% VAT on digital services provided by foreign companies.

The bottom line: The tax will apply regardless of whether a digital service provider has a physical presence in the Philippines. Foreign digital service providers earning over PHP 3 million must register with the Philippine tax authority by April 2, 2025 to comply.

Starting January 1, 2025, the VAT registration threshold in Ireland will increase from €80,000 to €85,000 for goods and from €40,000 to €42,500 for services.

The bottom line: These threshold hikes aim to ensure small businesses remain below the threshold and do not have to register.

South Africa is considering removing the requirement for foreign digital service providers to charge VAT on B2B transactions. Under the proposed change, effective April 1, 2025, South African businesses would become responsible for self-reporting VAT through a reverse charge mechanism.

The bottom line: This change would eliminate the need for non-resident companies selling digital services exclusively to South African businesses to maintain VAT registration in the country. Currently, South Africa requires VAT on foreign digital services for both B2C and B2B transactions.

Mexico now requires foreign digital service providers to meet two new registration conditions: 1) Legal documents must explicitly state their primary business activity is offering services through a technological platform, and 2) companies must submit a legal representative-signed affidavit detailing their services, website, and main business address.

The bottom line: The registration process for digital service providers operating in Mexico will become more complicated. New registrants should carefully check and potentially update their paperwork to meet these new requirements.