The OECD has published guidance on implementing international standards for the VAT treatment of cross-border trade in services and intangibles, as recommended in the BEPS Action 1 report on tax challenges of the digital economy, reflecting the rapid growth in the digital economy and its implications for the tax base.
The guidance focuses on business-to-consumer sales, building on approaches such as the EU’s ‘mini one-stop-shop’, requiring foreign suppliers to register and collect VAT on cross-border sales.
The guidance, entitled Mechanisms for the effective collection of VAT/GST where the supplier is not located in the jurisdiction of taxation, is available at http://bit.ly/2yKYdWK.
The European Council discussed issues around ‘an effective and fair taxation system fit for the digital era’ on 19 October, confirming its commitment to ‘ensure a global level-playing field in line with the work currently underway at the OECD’. The OECD is due to report to the G20 in spring 2018. The European Commission announced a set of proposals of its own in September for reforming international tax rules, but is waiting for the OECD report before taking matters forward at the EU level.
The OECD has published guidance on implementing international standards for the VAT treatment of cross-border trade in services and intangibles, as recommended in the BEPS Action 1 report on tax challenges of the digital economy, reflecting the rapid growth in the digital economy and its implications for the tax base.
The guidance focuses on business-to-consumer sales, building on approaches such as the EU’s ‘mini one-stop-shop’, requiring foreign suppliers to register and collect VAT on cross-border sales.
The guidance, entitled Mechanisms for the effective collection of VAT/GST where the supplier is not located in the jurisdiction of taxation, is available at http://bit.ly/2yKYdWK.
The European Council discussed issues around ‘an effective and fair taxation system fit for the digital era’ on 19 October, confirming its commitment to ‘ensure a global level-playing field in line with the work currently underway at the OECD’. The OECD is due to report to the G20 in spring 2018. The European Commission announced a set of proposals of its own in September for reforming international tax rules, but is waiting for the OECD report before taking matters forward at the EU level.
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")