DESIGN AND PRACTICAL OPERATION OF SIMPLIFIED REGISTRATION AND COLLECTION REGIMES

In January 2021, the OECD Committee on Fiscal Affairs (CFA) requested the development of guidance to support the coherent implementation of the International VAT/GST Guidelines (the Guidelines) as incorporated in the OECD Council Recommendation on the Application of Value Added Tax/Goods and Services Tax to the International Trade in Services and Intangibles [C(2021)120]1. This work is expected to result in a series of reports providing practical guidance to tax authorities, to facilitate the effective and coherent implementation of the principles of the Guidelines, thereby taking into account differences in jurisdictions’ legislative framework and administrative capacity. This work is carried out by the OECD's Working Party No 9 on Consumption Taxes (WP9), in close consultation with the business community through the Technical Advisory Group to WP9 (TAG). The CFA requested that WP9 focus first on the development of concrete guidance for the design and practical implementation of mechanisms for the efficient and effective collection of VAT/GST on supplies of services and intangibles by foreign suppliers, as recommended in the Guidelines. The outcome of this work is presented in this report (hereafter the "report on collection mechanisms")