Digital Economy and Consumption Taxes (VAT / GST)

Address the Tax Challenges of the Digital Economy’ – the Action 1 of the “Action Plans on Base Erosion and Profit Shifting” issued by the Organisation for Economic Co-operation and Development (OECD) in 2013 required identifying the main difficulties that the digital economy poses for the application of existing international tax rules. Action 1, then, recognized that non-resident suppliers should register and account for VAT / GST in as many foreign jurisdictions as they have consumers of remotely delivered services. Currently, over 80 countries, require digital supply by non-residents to persons not registered under the local VAT / GST laws to make payment of VAT / GST, even if there is no local presence of the non-resident in that country. KNAV can assist businesses in evaluating such VAT / GST implications and assist in compliance, where applicable. To know more about our services, please get in touch with us at [email protected]

Contributing Advisors