Market leading insight for tax experts
View online issue

OECD proposes involving online marketplaces in VAT/GST collection

printer Mail

The OECD global forum on VAT has welcomed a new high-level report proposing measures to make online marketplaces liable for VAT/GST on sales made through their platforms, as well as increased data sharing and enhanced co-operation with tax authorities. The new report builds on the 2015 BEPS action 1 report on ‘Tax challenges of the digital economy’.

  • Ch 1 provides the overall context for the report, most notably the explosive growth in online sales to private consumers;
  • Ch 2 considers the full VAT/GST liability regime, which makes the digital platform fully and solely liable for assessing, collecting and remitting the VAT/GST due on the online sales it facilitates, as implemented or under consideration by a growing number of jurisdictions, with some alternative approaches also considered;
  • Ch 3 focuses on other roles for digital platforms, including information sharing with tax authorities, education of suppliers and formal co-operation agreements, as well as examining the merits of platforms taking a voluntary liability obligation;
  • Ch 4 examines supporting measures for collection of VAT/GST on online sales beyond measures specifically targeted at digital platforms, looking also at fulfilment houses and direct sellers.

The report does not aim at detailed prescriptions for national legislation, but seeks to present a range of possible approaches.

The report on ‘The role of digital platforms in the collection of VAT/GST on online sales’ is available at

Issue: 1437
Categories: News