In addition to the well-known challenges of technology and skills gaps, and e-commerce related trade frictions (such as those outlined in the recent ICC Baseline Position), MSMEs face another potential barrier to market access and cross-border commerce: complex, costly and inconsistent indirect tax collection processes. [...] We believe the JSI negotiations offer the potential to frame WTO disciplines that ensure behind the border measures are non-discriminatory and avoid the creation of non-tariff trade barriers. [...] WTO Plurilateral Negotiations on Trade-related Aspects of Electronic Commerce | 1 INDIRECT TAXES Value-Added Tax (VAT) and Goods and Services Tax (GST) are indirect or consumption taxes, borne by the final consumer in the jurisdiction of consumption and charged/levied on supply of goods and services at the time of supply. [...] The key elements for this to be achieved are: > the destination and neutrality principle > simplicity, consistency, feasibility and proportionality, and channel neutrality when it comes to VAT/GST collection > cooperation and exchange of information between tax administrations to ease compliance Consideration should also be given to automation (given the millions of transactions and hundreds of th. [...] We also kindly encourage JSI participants to look at the VAT/GST work already done in this field, particularly on efficient VAT/GST collection mechanisms, by other international organisations such as the OECD: OECD VAT/GST Guidelines OECD Report—Mechanisms for the Effective Collection of VAT/GST—Implementation Guidance OECD Report—The role of digital platforms in the collection of VAT/GST on onlin.
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