The OECD international VAT/GST Guidelines on Cross-border Trade in Digital Goods - New Developments since the Ottawa Conference (1998) on Restoring Tax Neutrality : Notes and Comments

Abstract

Taxation of e-commerce is a global issue that cannot be resolved by adopting Value Added Tax (VAT) rules with extra-territorial powers in the absence of international treaties. Furthermore, where jurisdictions modernise their VAT rules in isolation and without having regard to international trends and inter-jurisdictional relationships, the modernisation is set for failure. The Organisation for Economic Co-operation and Development (OECD) is an international body that concerns itself with the promotion of policies that will improve the social and economic well-being of people around the world. It provides a forum for governments to work together, share experiences, and seek solutions to common problems. One of its various areas of research is the taxation (more specifically consumer taxes) on cross-border trade in services and intangibles.