Global Tax Online Marketplace Measures VAT/GST Collection

The Organisation for Economic Co-operation and Development (OECD) recently issued a press release titled “Global tax community welcomes new measures to enlist online marketplaces in the collection of VAT/GST in e-commerce,” which highlights the endorsement of measures to reduce tax leakage related to non-registrant digital sales.

The measures were proposed in a new OECD report that includes policies to make supplies made by unregistered online traders through electronic platforms taxable by holding the online marketplaces liable for the VAT/GST applicable on such supplies. Data sharing among tax authorities and online marketplaces have also been proposed.