UN Tax Committee has backed a five-track VAT and GST work programme covering some of the biggest challenges facing indirect tax systems
At its 33rd session in Geneva in October 2026, the Committee reviewed the first detailed outlines being developed by its Subcommittee on Indirect Taxes.
The work is particularly focused on the challenges facing developing economies, but many of the issues are global. The aim moving global VAT reform beyond designing the tax towards administering increasingly digital VAT systems.
But the UN isn’t operating in an empty field as the OECD tax policy guidance work has already looked into much of this. Much of the
Five VAT workstreams
The programme is divided into five areas:
1. VAT in the digitalised economy
This is potentially the largest workstream. It will consider how established VAT principles apply as economies become increasingly digitalised.
The proposed guidance covers cross-border digital and remote services, including software, cloud computing, online advertising, streaming, telecommunications and online professional services.
E-commerce in goods and the growing role of digital platforms will also feature prominently, including mechanisms for making platforms responsible for VAT collection.
2. VAT fraud, refunds and SME compliance
The second workstream looks at vulnerabilities within the VAT system.
It will consider false invoices and input VAT fraud alongside measures for preventing fraud. Refund management will also feature, particularly where delayed VAT refunds create significant problems for businesses.
The UN will also examine the particular compliance challenges facing smaller businesses.
3. Cross-border VAT dispute prevention and resolution
Cross-border VAT disputes have traditionally received much less attention than direct tax disputes.
Different national treatments of cross-border supplies can result in uncertainty, double taxation and unresolved VAT refund claims. The workstream will consider mechanisms for preventing and resolving these disputes and improving cooperation between tax authorities.
4. VAT on financial services, FinTech and crypto
The traditional VAT treatment of financial services is becoming harder to apply as financial products and payment models evolve.
The UN programme will examine established financial services alongside newer areas including FinTech, crypto-assets and cross-border financial services.
Practical case studies and policy options are expected to form part of the resulting guidance.
5. VAT and vulnerable households
The final workstream has been refined from the broader issue of VAT regressivity to “Addressing the distributional effects of value added tax on vulnerable households.”
Governments have traditionally attempted to reduce the regressive effects of VAT through reduced rates, zero-rating and exemptions. The UN will also consider more targeted alternatives, including social transfers and mechanisms for providing VAT refunds directly to consumers.
The UN’s guidance will not create binding international VAT rules. But particularly for developing countries designing or modernising VAT regimes, it could become an influential reference point.
UN and OECD VAT work: complementary or competing?
The OECD’s International VAT/GST Guidelines have become an important global reference for cross-border VAT, particularly digital trade. Its regional Digital VAT Toolkits have extended that work into practical implementation for developing economies, while its latest work is tackling digital continuous transaction reporting and e-invoicing.
There is considerable overlap with the UN programme. Digital platforms, cross-border VAT, administration and compliance are now firmly on both agendas.
That could be complementary. The UN is placing greater emphasis on issues particularly important to developing economies, including VAT fraud, refunds, SME compliance and the distributional impact of VAT.
But there is also a risk. Businesses already face increasingly fragmented national approaches to VAT, e-invoicing and digital reporting. Two international bodies developing parallel guidance should help convergence — not create competing interpretations.
The test will therefore be whether the UN builds on existing international VAT principles while filling the gaps, rather than creating another layer of them.
