Addressing legislative and technical pain points for digital merchants. While merchants struggle to comply with varying and conflicting digital tax laws from around the world, a new white paper released by Taxamo outlines a number of recommendations for tax authorities that if adopted, would greatly ease the burden of compliance for digital merchants.
Taking recent tax changes implemented in Europe, Japan, and South Africa as case examples, the white paper, ‘Standardizing International Digital Tax Compliance’ provides detailed background and guidance on:
There have been some interesting US digital tax developments of late, with the common driving force being the amount of potential revenue going unclaimed by tax jurisdictions.
In late October 2015 Chicago officially rubber-stamped their new amusement tax (commonly referred to as a ‘Netflix Tax’ and in operation since July 1, 2015), while both the city of New York and the State of Georgia have received budgetary advice on the need to tax digital services.
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.
A series of myths have been perpetuated since the new EU digital VAT rules were established. It is time these were shattered.
Before we proceed with our myth demolition let’s get one thing straight: these new rules are going to come into effect on January 1, 2015. This date has already been agreed to by all of the 28 EU Member States – it will not be moved, or postponed.