KPMG report: VAT remote-seller rules
Information for remote vendors or marketplaces facilitating sales
Before the advent of the internet, most value added tax (VAT) laws were designed for domestic brick-and-mortar sales, with VAT applied where the vendor was located. However, the digital economy’s rise, including the erosion of physical borders and the shift from tangible to intangible property, has challenged these traditional VAT rules, leading to potential revenue losses.
To address these challenges, governments, guided by the Organisation for Economic Co-operation and Development (OECD) 2015 International VAT/GST Guidelines, have begun to mandate that remote vendors or marketplaces facilitating sales register for, collect, and remit VAT on sales of digital services.
Read a June 2024 report* prepared by KPMG LLP tax professionals that provides information for remote vendors or marketplaces facilitating sales, considering how to pay attention to rules requiring them to register for, collect, and remit VAT on sales of digital services.
* This article originally appeared in The Tax Adviser and is provided with permission.