The Role of Digital Platforms in the Collection of VAT/GST on Online Sales
This report provides practical guidance to tax authorities on the design and implementation of a variety of solutions for digital platforms, including e-commerce marketplaces, in the effective and efficient collection of VAT/GST on the digital trade of goods, services and intangibles. In particular, it includes new measures to make digital platforms liable for the VAT/GST on sales made by online traders through these platforms, along with other measures including data sharing and enhanced co-operation between tax authorities and digital platforms. It builds on the solutions for the effective collection of VAT/GST on digital sales included in the International VAT/GST Guidelines and the 2015 BEPS Action 1 Final Report “Addressing the Tax Challenges of the Digital Economy.” It is of particular relevance recognising the growing importance of the platform economy and notably the potential of digital platforms to significantly enhance the effectiveness of VAT/GST collection given their important role in generating, facilitating and/or executing online sales.
Also available in: French
Supporting measures for efficient and effective collection of VAT/GST on online sales
This chapter examines supporting measures for the efficient and effective collection of VAT/GST on online sales beyond measures specifically targeted at digital platforms. This chapter examines the possibilities of joint and several liability as a means to encourage compliance and co-operation; and possible measures to support compliance in respect of supplies made via so-called “fulfilment houses”. It also recalls the need for measures to facilitate compliance for online suppliers that do not sell through a digital platform (“direct sellers”); and considers the importance of co-operation and information sharing between tax and customs authorities at domestic level, as well as of the international exchange of information and administrative co-operation at trans-national level, notably to support compliance through risk analysis.
Also available in: French