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SECOND MEETING OF THE OECD GLOBAL FORUM ON VAT
17-18 April / Tokyo, Japan
SESSION 1: GLOBAL VAT POLICY TRENDS AND DEVELOPMENTS
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SECOND MEETING OF THE OECD GLOBAL FORUM ON VAT 17-18 April / - - PowerPoint PPT Presentation
SECOND MEETING OF THE OECD GLOBAL FORUM ON VAT 17-18 April / - - PowerPoint PPT Presentation
SECOND MEETING OF THE OECD GLOBAL FORUM ON VAT 17-18 April / Tokyo, Japan SESSION 1: GLOBAL VAT POLICY TRENDS AND DEVELOPMENTS 2 Key developments in the EU, incl. the EUs 2015 one stop shop reform for supplies of e-services by
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- Key developments in the EU, incl.
the EU’s 2015 “one stop shop” reform for supplies of e-services by non-EU suppliers to EU consumers
- Mr Donato Raponi, Head of VAT
Unit, Taxation and Customs Union, EU Commission
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Introduction
- Since VAT is a consumption tax, revenues
should accrue to the country of consumption
- This is best ensured through taxation at
destination
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Place of taxation
- Most B2B services already taxed at
destination
- B2C services in general taxed at origin (the
place where supplier is established)
- Some B2C services however taxed at
destination
- Taxation at destination may evolve further
as required
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Wider context
- Must be seen against the background of
work undertaken by
– OECD Task Force on taxation of the digital economy as part of the BEPS Action Plan – EU Commission Expert Group examining the best ways of taxing the digital economy in the EU
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2015 changes
- Principle adopted
– shifting to taxation at destination – now for all suppliers (EU and non-EU)
- Services concerned:
– telecom, broadcasting and electronic services
- Taxation based on:
– customer residence (proxy)
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2015 changes
- Prerequisite for change
– need to facilitate collection of VAT and enhance cooperation
- In response to that
– a mini one stop shop (MOSS) introduced – steps taken to put in place arrangements for cooperation
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What lessons can be drawn?
- Destination principle still appropriate as approach
for remote supplies but …
– how to ensure taxation at the place of consumption?
- need for common rules to bolster compliance
- MOSS for non-EU suppliers: based on voluntary compliance
- consider extending MOSS to other supplies like goods supplied over the
Internet (e-commerce)
- More international cooperation required
– between countries
- administrative cooperation arrangements (OECD Model Tax Convention?,
bilateral agreements?)
- putting in place MOSS at international level?
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