OECD: Guidance on digital continuous transactional reporting (DCTR) for VAT
OECD report provides guidance to help jurisdictions develop and operate DCTR regimes.
The Organisation for Economic Co-operation and Development (OECD) on January 10, 2026, published a report on Digital Continuous Transactional Reporting for Value Added Tax, offering policy and design considerations for jurisdictions planning to introduce or reform digital continuous transactional reporting (DCTR) mandates.
Read the OECD release (January 10, 2026)
General approach
The report recognizes the rapid proliferation of DCTR mandates globally, driven by the opportunities of digital transformation. These regimes require real-time or near real-time reporting of invoices or transactional data to tax authorities and are increasingly adopted worldwide as part of the digital transformation of tax administration. The report acknowledges the significant challenges these mandates create for multinational businesses and small and medium enterprises engaged in cross-border trade, due to the heterogeneity and lack of interoperability among national systems. This complexity can lead to increased compliance costs, legal uncertainty, and operational burdens for businesses operating internationally.
Key highlights
The purpose of the OECD's report is to help jurisdictions design and operate more consistent, efficient, and effective DCTR regimes that can work together globally. To this end, the report provides a detailed framework structured around six key considerations:
- Developing a solid strategic basis: Defining policy objectives, establishing a comprehensive regulatory framework, and consulting with businesses and other jurisdictions
- Embracing the digitalisation of invoicing: Leveraging electronic invoicing and global standards to improve efficiency and interoperability
- Facilitating compliance: Providing clear guidance, minimizing compliance costs, and ensuring sufficient lead time for implementation
- Ensuring information security: Implementing robust security measures, legal frameworks, and adherence to international standards
- Fostering interoperable data exchange: Promoting interoperability between electronic invoicing systems and DCTR platforms for seamless business interaction
- Considering long-term sustainability: Monitoring DCTR impacts, avoiding constraints on economic growth and innovation, and ensuring compatibility with international trade
The OECD report further includes certain practical recommendations and examples for jurisdictions considering DCTR. These include measures to promote the uptake of e-invoicing, such as financial incentives, grants, subsidies, and partnerships with industry to encourage the transition from paper to electronic invoicing. An illustrative implementation roadmap is also included, spanning a period of four years and covering phases such as preparation, introduction, deployment and optimization, launch, and post-implementation. This roadmap highlights the importance of thorough testing, stakeholder consultation, and phased roll-out for effective and sustainable DCTR systems.
KPMG observation
The OECD guidance is not prescriptive but aims to support jurisdictions in designing efficient and consistent DCTR regimes. In other words, this document serves as a blueprint for jurisdictions considering the implementation of DCTR mandates, rather than a recommendation to adopt them and in which form. For businesses, this signals:
- Future expectations: Greater integration of tax compliance into digital workflows, especially for value added tax (VAT)
- E-invoicing as a foundation: Continued global convergence toward e-invoicing standards
- Preparation for interoperability: Anticipate requirements for real-time reporting and cross-border data exchange
Businesses can monitor developments closely, assess readiness for real-time VAT reporting, and engage with technology providers to verify compliance capabilities. As DCTR regimes continue to evolve, proactive engagement and adaptation will be essential for businesses to navigate the changing landscape of VAT administration.
For further information, contact a KPMG tax professional:
Lachlan Wolfers | lachlanwolfers@kpmg.ca
Lyubov Skenderova | Skenderova.Lyubov@kpmg.com
Philippe Stephanny | philippestephanny@kpmg.com
Ramon Frias | Ramonfrias@kpmg.com