Richard Cornelisse

OECD Issues Draft Guidelines On VAT On Services, Intangibles – February 2013

In EU development, General, Tax News on 10/02/2013 at 11:43 am

The Organization for Economic Cooperation and Development (OECD has released its latest set of draft Guidelines to address uncertainty and the risk of double taxation and unintended non-taxation that results from inconsistencies in nations application of value-added tax VAT to international trade, with a specific focus on trade in services and intangibles.

The Guidelines build on two core principles that were adopted by the OECD’s Committee on Fiscal Affairs in 2006:

  • The “neutrality” principle, whereby VAT is a tax on final consumption that should be neutral for business;
  • The “destination” principle, whereby internationally traded services and intangibles should be subject to VAT in their jurisdiction of consumption.

Read more: OECD Issues Draft Guidelines On VAT On Services, Intangibles.

OECD International VAT/GST Guidelines – Draft Consolidated

4 interim drafts:

  1. a preface to the Guidelines;
  2. the core features of VAT-systems to which the Guidelines are intended to apply,
  3. place of taxation for cross-border supplies of services and intangibles to businesses that have establishments in more than one jurisdiction,
  4. implementation of specific rules for determining the place of taxation for cross border business-to business supplies of services and intangibles.

OECD International VAT/GST Guidelines – Draft Consolidated – INVITATION FOR COMMENTS FEBRUARY 2013

 

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