VAT in the digital era : unilateral and multilateral options for reform / edited by Yan Xu.

Format:

Book

Contributor:

Xu, Yan, editor.

Series:

Oxford scholarship online.

Oxford scholarship online

Language:

English

Subjects (All):

Value-added tax--Law and legislation.

Value-added tax.

Electronic commerce--Taxation--Law and legislation.

Electronic commerce.

Internet industry--Taxation--Law and legislation.

Internet industry.

Double taxation.

Physical Description:

1 online resource (0 pages)

Edition:

First edition.

Place of Publication:

Oxford : Oxford University Press, 2023.

Summary:

'VAT in the Digital Era' brings together leading scholars and practitioners in the fields of VAT and international taxation to explore possible unilateral and multilateral approaches for the creation of an internationally coordinated framework on VAT on cross-border digital supplies.

Contents:

Cover

VAT in the Digital Era

Copyright

Contents

List of Illustrations

List of Tables

List of Abbreviations

List of Contributors

1. VAT in the Digital Era: Responses and Prospects

I. Introduction

II. Jurisdictional Experiences

III. International Guidance, Lessons, and Prospects

IV. The Way Forward: Concluding Remarks

2. Digital Supplies in a Cross-​Border Context: The EU Perspective on VAT Coordination

II. Key Concepts of VAT in the EU Regarding Digital Supplies

A. The Notion of Digital Supply in EU Law

B. Place of Supply of Digital Supplies under EU Law

III. EU Legislative Developments Involving Collection of VAT on Digital Supplies

A. The Regime Applicable to the Supplies of Electronic Services since 2015

B. The New Regime Applicable to Intra-​EU Distance Sales (as of July 2021)

C. The New Regime Applicable to B2C Imports from Outside the EU

IV. Final Remarks and Conclusions

3. US Sales Taxes on Cross-​Jurisdictional Transactions

II. Flirtations with VAT

III. Overview of Subnational Sales Taxes

A. Historical Development

B. The Mechanics of the Sales Tax Compared to a VAT

C. Characterization of the US Sales Taxes

D. The Political Context

IV. The Treatment of Interstate Supplies

A. The Role of the Use Tax and Its Historical Deficiency

B. The Nexus Requirement

C. Marketplace Facilitators

V. Application of the Destination vs Origin Principle on Cross-​Border Sales of Goods

A. International Cross-​Border Supplies

B. Interstate Supplies

C. Intra-​State Supplies

VI. Taxation of Services and Digital Supplies

A. Supply of Services

B. Bundled Supplies

C. Digital Supplies

D. Digital Services

E. Tax Jurisdiction (Place of Supply Rules)

F. Conclusions.

VII. International Consumption Tax Coordination

VIII. Conclusions

4. China's VAT in the Digitalized Economy

II. VAT Challenges in the Digital Economy

A. Digital Services

B. Low-​Value Goods

III. China's VAT Rules for B2C Imports

A. Low-​Value Goods

B. Digital Services

IV. Conclusions

5. 'Operation Netflix': A Review of Australian Reforms to Apply the Goods and Services Tax to Inbound Cross-​Border Supplies in the Digital Economy

II. The OECD Approach

III. An Overview of the Australian 'Netflix Tax' Reforms

A. Rationale for Reform

B. Overview of the Legislative Scheme

IV. How the OECD Approach Performs under the Australian Reforms

A. The Australian Consumer Requirement

1. The Residency Requirement

2. The Consumer Element

B. Enlisting Electronic Distribution Platforms

C. Simplified Registration, Reporting, and Remittance

D. International Coordination and Cooperation

V. Reflections on the Income versus Consumption Base Debate

VI. Conclusion

6. The Digital Economy Challenges to the Japanese Consumption Tax

II. CT (VAT) Registration Number

III. The Slow Adaptation of Japan's CT System to a Digital Economy

A. Reverse-​Charge Rule

B. Business-​to-​Consumer Digital Supplies

C. Low-​Value Tangible Imports

D. Sharing Economy

E. Digitalizing CT Compliance and Administration

F. Evasion

G. Implications of International Tax Reforms for CT Administration

7. VAT and Digital Supplies: A South African Perspective

II. The Importance of Classifying and Defining Digital Goods

A. Is There a Supply of Goods or Services?

B. The 2014 Definition of 'Electronic Services'

C. The 2019 Definition of 'Electronic Services'.

III. The Distinction between B2B and B2C Transactions

IV. Place-​of-​Supply Rules

V. Registration of Foreign Suppliers of Electronic Services

VI. VAT Compliance

A. Advertising and Invoicing

B. Repair and Upgrade of Electronic Services

VII. E-​Commerce Platforms

VIII. Regional and International (Dis)Harmonization

IX. Conclusion

8. A 'Model Framework' for Applying Consumption Taxes to International Services and Intangibles: Are We There Yet?

I. Prequel: A Note from the Author

II. The State of Play before 2006

A. The Issues

B. Setting Parameters for the Work

III. Applying the 2017 Guidelines to the 2004 Problems

A. The 2017 Guidelines

B. 2004 Report Example I: Lease of Goods

1. The Issues in 2004

2. Applying the 2017 Guidelines

C. 2004 Report Example II: Force of Attraction

D. 2004 Report Example III: Global Services Contract

E. The Real Estate Agent

1. The issues in 2006

IV. Are We There Yet?

9. Lessons from EU VAT Harmonization

II. Institutional Framework

A. Legislation

B. Administration

C. Adjudication

D. Revenue Entitlement

III. How Harmonization Has-​and Has Not-​Progressed

A. Historical Development of the EU VAT System

B. Case Studies of Recent Reform Attempts

1. Financial Services

2. The 'Definitive System' for Cross-​Border B2B Transactions

3. Standardized VAT Return

4. VAT in the Digital Age

IV. Lessons to Be Learned

A. Unanimity

B. Soft-​Law Approaches

C. National Pilot Projects

D. Incremental Reform

E. Stakeholder Involvement

F. International Coordination

G. Common Understanding of the Common System

H. Revenue Sharing

V. Conclusion.

10. The Role of Platforms in the Collection of Consumption Taxes in the Digital Economy: Lessons from the US State Experience

II. Overview of the Role of Platforms in the Collection of Consumption Taxes in the Digital Economy

III. US State Platform Legislation

A. Introduction

B. State Platform Legislation

1. Defining the Platform with Tax Collection Obligations

2. Specifying the Obligations of the Platforms

3. Specifying the Respective Obligations of Platforms and Those Who Sell over Platforms

4. Simplifying Compliance Obligations

5. Disclosure of Online Sellers to Counter Use of Platforms to Facilitate Sale of Stolen Goods

IV. Conclusion

11. Brexit and VAT

I. Background

II. The Journey from 1972 to 31 January 2020: Always Follow the Money

A. Spare a Thought for the Judiciary

B. The Choreography of Departure: The Grand Compromise

C. Techniques

D. The Specific Milestones

E. The Key Provision

F. Real Changes

G. Dismantling the EU VAT System in the United Kingdom While Ensuring Business as Usual

H. The Symbolic Repeal of the Implementing Regulation

I. How the VATA 1994 Lives On

III. The General Principles

A. Fiscal Neutrality

B. Equivalence and Effectiveness

C. Abuse

IV. Concluding Remarks: A Cloud on the Horizon?

12. Some Thoughts on the Relationship between the Destination-​Based Cash Flow Tax and VAT

II. Definitional Issues

A. Profit versus Value Added

B. The DBCFT-​A VAT cum Wage Tax Reduction?

III. Compatibility with WTO Law

IV. VAT and CIT-​or DBCFT?

13. The Origins of Destination-​Based Income Taxation: US and International Tax Perspectives

II. Origins: The 1923 League of Nations Report

III. Limits: Permanent Establishment and the Arm's-​Length Standard.

IV. US State Sales-​Based Formulas

V. Criticism of PE and the ALS

VI. The Digital Economy

VII. BEPS and Pillar One

VIII. Conclusions: Unilateralism, Bilateralism, or Multilateralism?

14. The Future of Indirect Taxation in a Digital World

II. Proposition 1: Policymakers' Use of the Opportunity of Digitalization to Tax Everything and Everyone under a VAT

III. Proposition 2: Examples of Double Taxation and Double Non-​Taxation of Digital Services Abound

A. Online Booking Services

B. Advertising Services

C. Telecommunications Services

IV. Proposition 3: Neutrality Being Sacrificed in Pursuit of Greater Levels of Taxation in the Digital Economy

V. Proposition 4: Impossibility to Apply a Single, Simple, and Consistent VAT Treatment to Crypto, NFTs, and the Metaverse

A. Cryptocurrency

B. NFTs

C. Metaverse

D. Where to Next with Crypto?

VI. Proposition 5: Proliferation of Alternative Turnover Taxes on Digital Transactions

VII. Proposition 6: Digital Platforms as Captive Outposts of the Tax Authorities

VIII. Proposition 7: Tax Audits of Digital Businesses and the Impossibility of Full Compliance

A. New or Emerging Digital Economy Players

B. Established Digital Economy Players

1. Customer Location Information

2. B2B vs B2C Sales

3. Registration Thresholds

4. Transaction Complexities

5. Tax Invoicing

6. Filing Processes

7. Other Compliance Nuisances

8. Data Privacy and Other Laws vs Tax Compliance

9. Overall

IX. Proposition 8: Ending Individual Jurisdiction-​Based VAT Compliance Reporting Rules for Digital Economy Participants

X. Conclusions

15. The Holy Grail of International Consistency in VAT Administration

II. The Pure VAT and the Desirability of International Consistency

A. Merits of the Pure VAT.

B. Desirability of Consistency.

Notes:

This edition also issued in print: 2023.

Includes bibliographical references and index.

Description based on online resource and publisher information; title from PDF title page (viewed on December 14, 2023).

ISBN:

0-19-888832-5

0-19-199505-3

0-19-888831-7

OCLC:

1411300289