The OECD has issued a draft consolidated version of the international VAT/GST Guidelines with an invitation for public comment on four new draft elements of the Guidelines. The new elements are a preface to the Guidelines; the core features of VAT systems to which the Guidelines are designed to apply; the place of taxation for cross-border supplies of services and intangibles to businesses that have establishments in more than one jurisdiction; and the implementation of specific rules for determining the place of taxation for cross-border business to business supplies of services and intangibles.
The Guidelines are being developed with the intention of reducing the risk of double taxation or double non-taxation resulting from inconsistency in the application of VAT rules to international trade. Such inconsistencies are most evident in the treatment of transactions in services and intangible assets and the Guidelines are therefore particularly concerned with problems arising from these types of transaction.
Written comments on the draft consolidated guidelines are invited from individuals, industry bodies or professional advisory firms. Comments may be sent to the OECD’s Consumption Taxes Unit by 3 May 2013.
