OECD Publishes Guidelines on Taxation of Services and Intangible Goods

April 13, 2017 Becca Haile

The Organization for Economic Cooperation and Development (OECD), in newly-published 2017 Guidelines for VAT/GST, has opined on how they believe VAT should be assessed on services and intangibles. Their primary recommendations are that countries adopt regimes which:

1. Tax services and intangibles at the place of consumption;
2. Tax business-to-business (B2B) transactions at the location where the service/intangible is used;
3. Apply a “reverse charge” for cross-border B2B transactions, shifting liability to the purchaser;
4. Tax business-to-consumer (B2C) transactions at the place where the consumer resides; and
5. Adopt simplified registration requirements for non-resident suppliers of B2C services and intangibles.

These guidelines are part of a continuing conversation on VAT and the digital economy, which was kick-started in 2013 by the OECD’s publication of its Action Plan on Base Erosion and Profit Shifting.

The post OECD Publishes Guidelines on Taxation of Services and Intangible Goods appeared first on Sovos.

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