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OECD draft international VAT/GST guidelines on place of taxation
On 18 December 2014, the OECD published a discussion draft for public consultation on the international VAT/GST guidelines, focusing on the guidelines on place of taxation for business-to-consumer supplies of services and intangibles.
These draft guidelines present a set of common principles for determining the place of taxation for B2C supplies of services and intangibles, in accordance with the destination principle. It presents the recommended approach for collecting the VAT/GST on cross-border B2C supplies of services and intangibles, focusing in particular on B2C supplies by non-resident suppliers.
Taxand supports the efforts of the OECD with these guidelines and believe that overall, they are a positive step forward in guiding OECD members' attitudes towards balancing the needs of generating essential government revenue, partly by means of indirect taxation, with the need to minimise administrative burdens placed on businesses necessary to collecting that revenue.