-- A seminal moment in global digital taxation is upon us.
The Organisation for Economic Co-Operation and Development (OECD) has introduced new guidelines endorsing place of consumption rules.
In publishing the ‘International Value Added Tax (VAT)/Goods and Services Tax (GST) Guidelines’ the OECD are further building on work that started in Ottawa, Canada, back in 1998. Eighteen months ago, in November 2015, the initial guidelines were included as part of Action 1 of the Base Erosion and Profit Shifting (BEPS) report released by the OECD in relation to the tax challenges of the digital economy.
On Monday, October 5, the Organisation for Economic Cooperation and Development (OECD) released their final BEPS report including a section on ‘Addressing the Tax Challenges of the Digital Economy’.
The report – according to KPMG in the UK – is seen as the biggest rewrite of the international tax landscape since the League of Nations proposed the first bilateral tax treaty in 1928. The OECD approach has indeed been exhaustive featuring 23 discussion drafts; 12,000 pages of commentary, and 11 public consultations.