International VAT Guides – Papua New Guinea

GST rates in Papua New Guinea 

How much is GST in Papua New Guinea? 

Goods and Services Tax (GST) is an indirect tax, a consumption tax, imposed on the supply of goods and services, or the importation of goods, in Papua New Guinea. Standard GST rate is 10%. 

The Papua New Guinea GST system has been modified effective January 1, 2026, with changes to the registration threshold, VAT rates, and the scope of taxability.

GST threshold in Papua New Guinea

The principal GST Papua New Guinea rules and requirements can be found in the GST Act. 

GST threshold in Papua New Guinea for economic operators, foreign and domestic, that carry on their business operations within the country should register for GST when the threshold is exceeded, or they can register on a voluntary basis. 

GST registration threshold for resident businesses: PGK 250,000

GST registration threshold for non-resident businesses in the e-commerce sector: no special rules

GST registration threshold for foreign businesses: PGK 250,000

GST Taxable Activities in Papua New Guinea

Types of taxable activities that mandate GST registration:

• Supply of goods and services for consideration;
• Supply of consultancy and professional services by non-resident providers
• Exports;
• Imports of goods and services; 
• Supply of warehousing services

Tax Representative in Papua New Guinea 

Non-resident providers of digital services should engage a local tax representative if they decide to register for GST.

Tax registration

Foreign or domestic economic operators that carry out business in Papua New Guinea should register for GST when they exceed the registration threshold, or register voluntarily if they prefer.

GST on Electronically Supplied Services in Papua New Guinea 

Digital Services

Non-resident providers of digital services under current GST rules aren’t mandated to register for GST in most of the cases. They can register voluntarily. 

How much is GST in Papua New Guinea for Electronically Supplied Services?

GST rate Papua New Guinea for remote services is 10%. 

Taxable Digital Services in Papua New Guinea

The following types of digital services are taxable:

• Audio and video streaming services 
• SaaS services
• Intermediation platform services
• Payment facilitation services
• Cloud computing services and storage

Marketplace and Digital Platform Operators Rules

There are no special GST rules for non-resident digital platform operators. 

Invoicing Rules

Non-resident service providers registered for GST should follow the general invoicing rules.

Foreign Currency Invoice in Papua New Guinea  

In most cases, issuing an invoice in a foreign currency is permitted. 

GST Returns in Papua New Guinea

Simplified Return

There is no simplified reporting procedure for non-resident providers of digital services.

Penalties for late reporting and omitted declarations 

Penalties for GST Non-Compliance:

GST-registered persons who don’t comply with the Goods and Services Tax Act may be subject to fines up to PGK 50,000.

The following non-compliance could be subject to a fine:

• Late GST registration 
• Late filing of returns
• Late payment 
• Improper document storage

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