The Role of Digital Platforms in the Collection of VAT/GST on Online Sales

Foreword
Executive Summary
Chapter 1.  The VAT/GST collection challenges of digital trade and the role of digital platforms in addressing them
	1.1. Introduction
	1.2. Digital trade growth and its challenges for VAT/GST collection
		1.2.1. Increasing digitalisation and the growth in e-commerce
		1.2.2. The relevance for VAT/GST
		1.2.3. The particular challenge of cross-border supplies of goods
	1.3. Delivering consistent solutions for the involvement of digital platforms in the collection of VAT/GST on online sales
		1.3.1. Objective of the report
		1.3.2. Scope of the report
		1.3.3. Sharing economy as a separate work stream
		1.3.4. Overview of measures identified in the report
	Notes
Chapter 2.  The digital platform as the person liable for the VAT/GST on online sales (platform VAT/GST liability regimes)
	2.1. Introduction
	2.2. Full VAT/GST liability regime
		2.2.1. Overview
		2.2.2. What are “digital platforms” for the application of a full VAT/GST liability regime? – Which indicators could be relevant for the application of the full VAT/GST liability regime?
			Indicators based on functions performed by the digital platforms
			Overarching principles for designing indicators for the full VAT/GST liability regime
		2.2.3. Other aspects of designing the scope of a full VAT/GST liability regime
			Foreign digital platforms (i.e. operated by non-residents) vs. domestic platforms
			Foreign suppliers and/or domestic suppliers?
			Services/intangibles and/or goods?
				Services and intangibles: specific services (e.g. digital/electronic services) vs. all services
				Imported goods: low-value goods vs. all goods
			B2B and B2C supplies
		2.2.4. Information needs that are considered relevant when operating under the full VAT/GST liability regime
		2.2.5. VAT/GST collection and payment process under the full VAT/GST liability regime
		2.2.6. Overarching policy design considerations with respect to the full VAT/GST liability regime
		2.2.7. Additional policy design considerations for full VAT/GST liability regimes for online sales connected with an importation of low-value goods
			Basic operation of a full VAT/GST liability regime for online sales connected with imports of goods
			Fast-track customs clearance
			Minimising risks of double taxation
			VAT/GST adjustments and corrections including for returned goods
		2.2.8. Overall assessment of the full VAT/GST liability regime
	2.3. Other liability regimes for digital platforms in the collection and payment of VAT/GST on online sales
	Notes
	References
Chapter 3.  Other roles for digital platforms to support the collection of VAT/GST on online sales
	3.1. Introduction
	3.2. Information sharing obligation
		3.2.1. Background and preliminary considerations
		3.2.2. Scope and application of the obligation
		3.2.3. Type of information to be shared/reported
		3.2.4. Implementation options
			Option 1 – Provision of information on request
			Option 2 – Systematic provision of information
		3.2.5. General design and policy observations/considerations
	3.3. Education of suppliers using digital platforms
		3.3.1. Background and possible approach
		3.3.2. General design and policy observations/considerations
	3.4. Formal co-operation agreements
		3.4.1. Background and preliminary considerations
		3.4.2. Scope of formal co-operation agreements
		3.4.3. General design and policy observations/considerations
	3.5. Platforms acting as a voluntary intermediary
		3.5.1. Background and preliminary considerations
		3.5.2. Scope
		3.5.3. General design and policy considerations
	Notes
	References
Chapter 4.  Supporting measures for efficient and effective collection of VAT/GST on online sales
	4.1. Introduction
	4.2. Joint and several liability
		4.2.1. Overview
		4.2.2. Practical application of joint and several liability provisions to digital platforms
		4.2.3. Description of Variation 1 – Forward looking
		4.2.4. Description of Variation 2 – Focus on past liability
		4.2.5. Implementation considerations for joint and several liability
	4.3. Monitoring supplies made via fulfilment houses
	4.4. Do not lose sight of online sales that do not involve digital platforms
	4.5. Co-operation between tax and customs authorities at domestic level
	4.6. International mutual co-operation and exchange of information
		4.6.1. Overview
		4.6.2. Existing mechanisms for mutual co-operation
	4.7. Supporting compliance through risk analysis
	4.8. Remain vigilant against abuse
	Notes
	References
		Annex A. A list of functions considered relevant for the application of the full VAT/GST liability regime
		Annex B. Simplified payment cycle
		Annex C.  Main features of a simplified registration and compliance regime for non-resident suppliers
		Annex D.  Possible implementation timeframe
		Annex E. A high-level overview of current customs procedures
		Annex F. Current international regulatory e-commerce developments
		Annex G. WCO cross-border e-commerce framework of standards (2018)
Annex A. A list of functions considered relevant for the application of the full VAT/GST liability regime
Annex B. Simplified payment cycle
Annex C. Main features of a simplified registration and compliance regime for non-resident suppliers
Annex D. Possible implementation timeframe
Annex E. A high-level overview of current customs procedures
Annex F. Current international regulatory e-commerce developments
Annex G. WCO cross-border e-commerce framework of standards (2018)