At the meeting of the UN Tax Committee on 27 March 2025 the subcommittee dealing with indirect taxation matters put forward some potential issues that the next membership of the Tax Committee may wish to consider at future sessions.

The subcommittee has identified some current issues within indirect taxation where further analysis and guidance could be helpful for developing country tax administrations. These topics cover emerging challenges in VAT/GST policy and in administration of the taxes. The specific topics selected for further work will be a matter for the next membership of the Tax Committee which will take up the work later in the year.

The topics suggested for future work include the VAT treatment of Islamic Finance Instruments; VAT and the financial sector; issues around VAT and the digital economy; the prevention and resolution of cross-border VAT/GST disputes; the application of VAT/GST to digital platforms; and electronic certificates for VAT/GST refunds. Another issue of importance would be guidance on how to design VAT/GST systems in a way that is less regressive, to allow developing country tax administrations to combine domestic resource mobilisation with fair taxation.

The subcommittee had also been working on some other indirect tax issues that were postponed, as priority was given to different issues in the time available. The work that was suspended could be taken up again in the future under the new membership of the Tax Committee. These issues include the interaction between VAT/GST and other taxes; guidance on the application of VAT/GST in specific sectors, including for example the tourism and construction sectors; and guidance on the application of VAT/GST to government entities, charities and donor-funded projects.

It is a matter for the next membership of the Tax Committee to take a decision on whether further work on guidance on any of these issues would be helpful.