Proposition 8: Country-based VAT compliance
In Proposition 7, we discussed a myriad of practical indirect tax compliance challenges being experienced by digital economy participants. This raises a more fundamental question — should country-based indirect tax compliance reporting obligations be imposed on digital economy participants at all? Let’s explore further.
In December 2020, the OECD released its Tax Administration 3.0 report, 123 which sets out a vision for the digital transformation of how tax authorities may carry out their work in the future. In our view, the report is one of the most forward-thinking and insightful tax policy reports in recent times.
Source KPMG