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OECD: Digital VAT Toolkit for Latin America and the Caribbean

The Digital VAT Toolkit for Latin America and the Caribbean (LAC) aims to assist LAC tax authorities with the design and implementation of legislative reforms that ensure the collection of VAT in electronic commerce operations. VAT is, on average, the largest source of tax revenue in LAC. The main challenges of VAT systems in electronic commerce are related to the strong growth in sales of digital services and products to end consumers (applications, access to music and video downloads, games, passenger transport, etc.) and with the exponential growth in online sales of low value imported goods, usually by sellers from abroad, in which VAT is not collected effectively under existing rules. LAC is one of the regions where e-commerce has grown the fastest in the world. The Toolkit provides detailed guidance to achieve the successful implementation of a comprehensive VAT strategy targeting all forms of electronic commerce. It has been designed to assist governments in the important task of obtaining VAT tax revenue and also to ensure a level playing field between online providers and traditional brick-and-mortar stores. This Toolkit was developed by the OECD in partnership with the World Bank. This collaboration also includes the future delivery of editions for Asia Pacific and Africa.

Source OECD

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