Consumption tax


The Role of Digital Platforms in the Collection of VAT/GST on Online Sales

This report provides practical guidance to tax authorities on the design and implementation of a variety of solutions for digital platforms, including e-commerce marketplaces, in the effective and efficient collection of VAT/GST on the digital trade of goods, services and intangibles. In particular, it includes new measures to make digital platforms liable for the VAT/GST on sales made by online traders through these platforms, along with other measures including data sharing and enhanced co-operation between tax authorities and digital platforms. It builds on the solutions for the effective collection of VAT/GST on digital sales included in the International VAT/GST Guidelines and the 2015 BEPS Action 1 Final Report “Addressing the Tax Challenges of the Digital Economy.” It is of particular relevance recognising the growing importance of the platform economy and notably the potential of digital platforms to significantly enhance the effectiveness of VAT/GST collection given their important role in generating, facilitating and/or executing online sales.

Published on June 20, 2019Also available in: French


Executive Summary
The VAT/GST collection challenges of digital trade and the role of digital platforms in addressing them
The digital platform as the person liable for the VAT/GST on online sales (platform VAT/GST liability regimes)
Other roles for digital platforms to support the collection of VAT/GST on online sales
Supporting measures for efficient and effective collection of VAT/GST on online sales
Annexes7 chapters available
A list of functions considered relevant for the application of the full VAT/GST liability regime
Simplified payment cycle
Main features of a simplified registration and compliance regime for non-resident suppliers
Possible implementation timeframe
A high-level overview of current customs procedures
Current international regulatory e-commerce developments
WCO cross-border e-commerce framework of standards (2018)
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