OECD GLOBAL FORUM ON VAT REPORT FROM PARALLEL SESSIONS E AND F ON - PowerPoint PPT Presentation

SECOND MEETING OF THE OECD GLOBAL FORUM ON VAT REPORT FROM PARALLEL SESSIONS E AND F ON DESIGNING GUIDELINES ON B2C TRADE IN SERVICES AND INTANGIBLES 17-18 April 2014 Tokyo, Japan

Rapporteurs • Parallel Session E: Kerstin Alvesson , Sweden • Parallel Session F: Piet Battiau, OECD Secretariat 2

Outcomes of Session E (Design framework for future guidelines)  Many proxies used but common approaches for the result needed.  Place of performance « on the spot services ».  Customer residence « services on a distance ».  Maybe other proxies are needed.  Distinguish between B2C and B2B probably needed.  There is a need for better administrative co-operation. 3

Outcomes of Session F (Digital Economy)  B2C trade in digital products is booming. A framework for the proper VAT treatment is needed to address revenues risks and issues of competitve distortion  Coherent approaches for identifying « consumers », « suppliers » and « jurisdcition of consumption » are needed  A system based on « customer residence » is likely to offer a good solution, combined with a vendor collection method based on simplified registration and compliance mechanisms  This needs to be complemented with enhanced international cooperation to support compliance of obligations by non-resident vendors 4

Overall conclusions  There is a need for a common approach in the world as the global trade for B2C is growing rapidly.  Future guidelines on B2C could form the basis for this common approach.  Guidelines on place of taxation will be needed to be combined with enforcement methods.  Administrative co-operation will be very important. 5