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.
