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OECD extends tax reporting framework to ecommerce goods and ride sharing

Global marketplaces and car sharing brought into VAT / GST review

The Organisation for Economic Cooperation and Development has extended the sector coverage for its model framework for tax authorities’ requests for data from gig and sharing economies. The new sectors added cover digital platforms that sell goods online and rent transportation

The original gig and sharing economies reporting framework was adopted last summer. This involved extensive consultation with global tax authorities and major digital platforms to strike a balance between understanding the full extent of sellers’ taxable transactions and overburdening operators with overlapping information requests. The OECD model covered reporting requirements, plus administrative and enforcement good practise.

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The extension of the model to goods and ride-sharing would allow tax authorities to automatically exchange information on goods sold and cars rented. The OECD said it was adding the optional rules in response to demand from “a number of jurisdictions,” noting that activities facilitated by such platforms aren’t always visible to tax authorities or self-reported by taxpayers.

EU review of VAT and platform economy

The EU is also reviewing VAT treatment for the platform economy, which includes the gig and sharing economies. And the DAC 7 EU marketplace reporting requirements come into effect on 1 January 2023.

EU VAT reforms

Reform (click for details) Update
2025 VAT registration thresholds equivalence foreign businesses On track
Virtual events VAT rule changes Agreed
2024 Payment providers' seller transaction reporting and bookkeeping obligations On track
Digital Reporting Requirements including EU e-invoicing harmonisation Implementation of VAT in the Digital Age?
2023 DAC 7 - marketplace reporting harmonisation On track
Financial Services VAT exemption reform proposals Consultation complete; proposal 2023
Tour operator margin scheme VAT reforms EC undertaking fresh review
2022 EU definitive VAT system On hold
EU reduced VAT rate freedoms Enter into force 6 April 2022
IOSS reforms to prevent double taxation Proposals early 2022
VAT in the Digital Age proposals On track for 16 Nov 2022 publication
Single VAT Registration in the EU - extension of OSS On track for 16 Nov 2022 publication
Proposal for VAT treatment of the platform economy On track for 16 Nov 2022 publication
VAT Gap Initiative Q3 2022
2021 One-Stop-Shop (OSS) single EU VAT return In effect since 1 July 2021
Ending €22 import VAT exemption; new IOSS return In effect since 1 July 2021
Marketplace deemed supplier EU VAT reforms In effect since 1 July 2021
2020 EU four Quick Fixes for VAT In effect
Tax authorities anti-VAT fraud cooperation In effect
Tax Action Plan - 25 VAT and other tax reforms roadmap See 'VAT in the Digital Age' and others
2019 Simplification of e-services VAT compliance and thresholds In effect
Single and multi-use vouchers In effect
2018 Lower e-book and publications VAT rates In effect, although not all EU states have adopted the option
EU Generalised Domestic Reverse Charge VAT Mechanism In effect, although no country has adopted this voluntary option
2015 B2C electronic services VAT reforms - MOSS return In effect

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