Why the OECD International VAT/GST Work Matters for Business
Introduction
In January 2026, Business at OECD (BIAC) commemorates the 10th anniversary of the OECD International VAT/GST Guidelines during the 6th Meeting of the OECD Global Forum on VAT in Paris. These guidelines have played a pivotal role in shaping global dialogue on VAT/GST, promoting economic growth and sustainable development through effective tax policy.
1. The OECD VAT/GST Technical Advisory Group (TAG): A Model for Cooperation
The TAG was established nearly two decades ago to facilitate collaboration between tax authorities and the business community. This platform has fostered a successful consultative process, ensuring that OECD VAT/GST policies reflect business realities and support international trade while enhancing compliance and administrative efficiency.
2. The International VAT/GST Framework Based on the OECD VAT/GST Guidelines: Why it Matters
The adoption of the International VAT/GST Guidelines in 2016 marked a significant milestone, providing a coherent framework based on the destination and neutrality principles. These principles aim to mitigate double taxation, ensure VAT neutrality, and create a level playing field, which is crucial for businesses engaged in international trade.
3. Ongoing and Future OECD VAT/GST Work
The TAG continues to engage with emerging issues such as e-invoicing, digital transaction reporting, and the implications of the crypto-asset economy. Future priorities include leveraging technology for compliance, enhancing cooperative compliance approaches, and ensuring proportionality in the collection and use of payment data.
4. Looking Ahead: Underlining the Value of the OECD VAT/GST Multistakeholder Process
The inclusive approach of the OECD has been fundamental in developing consensus-based standards and guidance. As the business community calls for continued engagement, it is essential for the OECD to maintain its collaborative dialogue to build future VAT/GST systems that are effective and responsive to the needs of all stakeholders.
Conclusion
The work of the OECD in VAT/GST policy remains crucial for businesses worldwide. Through ongoing collaboration, guidance, and the implementation of best practices, the OECD continues to play a vital role in shaping tax frameworks that promote economic activity and facilitate international trade. As we move forward, the business community stands ready to support these efforts, ensuring that VAT/GST systems evolve in a way that fosters growth and compliance for all.
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