Navigating the Complexities of Digital Taxation: Key Findings and Recommendations

• Geographic mismatch between digital platform users and product development locations
• Policy debates on taxes paid by digital companies and where they are paid
• Unilateral tax measures adopted by many countries targeting digital businesses
• 18 countries have implemented unilateral digital services taxes (DSTs)
• US plans to eliminate DSTs through multilateral agreement or trade threats
• Multilateral solution of Amount A from Pillar One creates winners and losers
• 101 countries have implemented VAT or GST on cross-border online sales
• Recommendation to expand consumption taxes to include digital services and products
• Policymakers should follow sound principles in developing, refining, and removing digital tax policies
• Recommendations for equal treatment of physical and digital business models in consumption and corporate income taxes
• Recommendations to avoid distortive and discriminatory approaches like digital services taxes and gross-based withholding taxes.

Source: taxfoundation.org

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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