1. OECD Update 111th meeting VAT Committee 30 November 2018
taxud.c.1(2018)
OECD Update
111th meeting VAT Committee 30 November 2018

2. (Centre for tax policy and administration)
Organisation OECD
Global Forum on transparency and exchange of information (EOI) for tax purposes
CFA (committee for fiscal affairs)
FTA (Forum on Tax Administration)
WP9 on consumption taxes
WP10 on EOI and tax compliance
Task force on digital economy
CTP
(Centre for tax policy and administration)

3. FTA
Created in 1997 to act as focal point for CFA work on tax administration
Forum where tax administration can exchange their experiences in addressing existing and future strategic challenges
Aims
Share information and experiences on tax administration issues
Service and compliance approaches
Performance measurement and management
Share thoughts on emerging administrative challenges

4. Members Mandate Working Party 9 Almost all Member States (23 MS)
Big third country economies (US, Australia, New Zealand, Canada, Japan, South Korea, Turkey…)
International associations (EU, ATAF, CIAT, CREDAF, IMF, WB, UN)
Academics
Cooperation/partnership also with China, Russia, South Africa
Members
Forum for discussing issues relating to consumption tax policy and administration
Developing international VAT/GST guidelines
Assisting non-OECD economies to improve the design and operation of their consumption tax systems
Assisting member countries
through the publication of comparative data and information concerning the application of consumption taxes
through the development of tools for measuring the efficiency of VAT/GST systems
Mandate

5. Working Party 10 Objectives Output
Provide strategic policy, legal, administrative and technical support to develop and improve EOI and mutual administrative assistance
Strengthen international co-operation
Enhance countries’ ability to tackle fraud, evasion and aggressive tax planning
Output
Develop international standards, guidelines and best practices
Forum to discuss and co-ordinate policies
Interpret standards and develop guidance and training on EOI
Organise meetings of tax inspectors and specialists
Cooperate closely with FTA
Mainly active in the field of corporate taxation

6. Task force on digital economy
Providing policy, legal, administrative and technical support to advance the work identified in the BEPS (Base erosion and profit shifting) Action 1 Final Report, “Addressing the Tax Challenges of the Digital Economy”
Mandate
Monitor developments that may affect tax policy
Emerging trends in technology, innovation and business models related to the digitalisation of the economy
Their impact on value creation
Their impact on tax policy and its implementation
Monitor developments in the regulation of the Digital Economy
Options relating to the new nexus – significant economic presence
Options to apply a withholding tax on certain digital services
Options to introduce an “equalisation levy”
Monitor and evaluate the effectiveness of measures implemented and of the international standards
Act as centre of expertise on issues related to the digital economy and engage with stakeholders
Tasks
Interim report end of 2018
Recommendation for further action in final report by end 2020
Timing

7. Work on digital taxation
OECD Task Force met on July 2018 in Paris
Continued work after adoption of the interim report on tax challenges arising from the digitalisation
Was follow-up of Communiqué of G20 Finance Ministers and Central Bank Governors of March 2018
Next meeting scheduled for 4-5 December
To discuss note by OECD to elaborate on concrete proposals made at the last meeting
The Presidency is coordinating the EU position

8. Enhanced role of marketplaces in collection of VAT/GST
Content of the interim report
It gives an overview of the different roles that can be allocated to marketplaces in order to enhance their responsibility in the collection of VAT/GST
Varies from merely providing information to dealing with joint and several liability, responsible for collection and finally the deemed supplier model
Includes experiences from countries already having implemented this type of provisions
Australia and New Zeeland have allocated a tax collection obligation for marketplaces
Singapore has introduced rules for collecting GST from marketplaces in relation to e-services
The EU will introduce in 2021 a deemed supplier model for certain transactions
Some countries have introduced joint and several liability rules for marketplaces
Others have introduced extra reporting obligations for marketplaces

9. WP9 report - Roles for digital platforms in the VAT collection process
Voluntary roles: Collection, supplier education, co-operation agreements…
Information sharing obligations
Liability to collect/remit without imposing full liability (e.g. joint and several liability)
Full VAT/GST liability

10. Enhanced role of marketplaces in collection of VAT/GST
Discussions in TAG (Technical Advisory Group)
Composed of delegates from tax administrations and business representatives
Mainly couriers and marketplaces raised comments
Observations are included in the document discussed in WP9
Discussions in WP9 and next steps
Text was almost finalised at the last WP9 meeting 6-9 November 2018
Major part of the report is devoted to the deemed supplier model and the extra reporting obligations that could be imposed on marketplaces
=> The EU policy on marketplaces is well reflected in the paper
Report is supposed to offer countries a series of possible alternatives that can be used as to enhance the role of marketplaces
Report will be formally adopted at the Global Forum meeting in Melbourne – end March 2019

11. VAT/GST aspects of sharing economy
Issue raised at the last WP9 meeting in November
Several jurisdictions gave presentations on how they tax Uber or Airbnb
At last meeting presentations from Blablacar and booking.com who raised following concerns:
Uncertainty over the nature of service provided: intermediary service, electronic service or the underlying supply
Need for: clear rules/legal certainty, automated processes, proportionality, avoidance of double or non-taxation, appropriate time for implementing changes
A common approach on taxing their activities
Governments concerns:
=> diversity of models in the sharing economy  difficult to have a clear-cut general definition for the service
OECD will propose to set up a team of countries willing to take the lead on this file
Will be discussed with business in TAG and reporting back to WP9

12. VAT/GST aspects of sharing economy
Next steps
Proposal will be launched most likely at the Global Forum to allow work to start as of Q2 2019
Quite some interest from business community and from several jurisdictions
Action at EU level – follow up on Working paper N°878 Vat Treatment of sharing economy