This report examines the design and operation aspects of digital continuous transactional reporting (DCTR) regimes for value added tax (VAT). It has been prepared in the context of a growing number of jurisdictions worldwide that have adopted or are considering the introduction of such regimes. DCTR typically requires the (near) real-time reporting of invoices or transactional data to tax authorities, most often with the objective of strengthening VAT compliance and risk management.
The rapid global expansion of DCTR regimes has, however, taken place in a largely uncoordinated manner. This has led to significant heterogeneity across jurisdictions, resulting in increasingly complex compliance challenges, particularly for businesses engaged in cross-border trade.
In response, this report offers guidance to support jurisdictions in the design and operation of DCTR regimes, with a view to facilitating compliance and administration while promoting greater international consistency. It addresses six key areas: strategic approaches to introducing DCTR; digital invoicing as the foundation of DCTR; measures to support business compliance; information security; interoperability; and the long-term sustainability of DCTR regimes.
The report is intended for consideration by interested jurisdictions and should not be interpreted as recommending the adoption of a DCTR regime, which remains the sovereign decision of each jurisdiction.
