OECD International VAT/GST Guidelines
- European News
- 15 April 2017 | Richard Asquith
The OECD VAT/GST Guidelines received further endorsement this week at the 4th OECD Global Forum on VAT.
The guidelines provide a comprehensive framework of standards and principles for countries around the world to follow in the development of coherent and consistant indirect tax guidelines. In addition, they aim to provide for clarity and harmony on the treatment of cross-border transactions, including the collection of taxes on such operations.
Aims of the guidelines include:
- Simplify the administration of VAT regimes;
- Improve the obligations and certainty for businesses looking to remain compliant;
- Reduce the incidents of double taxation; and
- Reduce the opportunities for VAT fraud.
Areas covered in the guidelines include:
- Core features of national VAT regimes: staged collections principle; a broad base; and taxing the final consumption.
- Achieving neutrality for business, including on cross-border transactions; and
- Adopting the destination principle for cross border B2B and B2C supplies of goods and services.
The OECD will continue to develop these guidelines in the future, including:
- Further guidance on the efficient operation of VAT regimes;
- How to adopt the guideline as technology changes the way goods or services are provided, and how VAT can be administered; and
- Dealing with related tax issues, including transfer pricing and permanent establishment.
Poland’s Ministry of Finance has announced that it will recategorise many supplies to within the current reduced VAT rate category. However, this will mean Poland will not...
Hungary has received permission to introduce an VAT registration threshold for businesses of HUF 12 million from 1 January 2019. This is approximately €48,000, based...
HMRC announced today that it is opening the test pilot for its Making Tax Digital for VAT programme to the public. However, HMRC also announced...