As noted in today’s OECD release, the International VAT/GST Guidelines are being developed to address issues of double taxation and unintended non-taxation resulting from inconsistencies in the application of VAT to international trade.
Public comments are requested on two new draft elements of these guidelines contained in the discussion drafts [PDF 185 KB] relating to:
The discussion draft of the B2C guidelines provides a response to the key conclusion on VAT/GST formulated in a report on the tax challenges of the digital economy, prepared in the context of the work under the OECD base erosion and profit shifting (BEPS) project’s Action 1 (digital economy). That report concluded:
The collection of VAT in business-to-consumer (B2C) transactions is a pressing issue that needs to be addressed urgently to protect tax revenue and to level the playing field between foreign suppliers relative to domestic suppliers. Work in this area . . . [is to] be completed by the end of 2015, with the Associates in the BEPS Project participating on an equal footing with the OECD member countries.
The discussion draft of the B2C guidelines:
Comments are due by 20 February 2015.
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