The Full VAT/GST Liability Regime of Digital Platforms in the Collection of Taxes on Online Sales

Gruevski, Ilija and Gaber, Stevan (2021) The Full VAT/GST Liability Regime of Digital Platforms in the Collection of Taxes on Online Sales. Journal of economics, 6. pp. 119-134. ISSN 1857-9973

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Abstract

It is unarguable that development of electronic markets and other digital platforms facilitated the transactions between buyers and sellers and continuously contributed to the rapid growth of online trade. This trend has never been more obvious during the pandemic crisis as the evidence suggests that more than two-thirds of all cross-border e-commerce sales of goods around the world are made through online markets. The growing significance of this segment is raising the question for a more efficient and effective collection of VAT/GST on online sales of goods, services and intangibles.
Some jurisdictions have already implemented measures that obligate digital platforms to collect VAT/GST on online sales, and more imortantly, have reported positive outcomes in improving compliance and tax revenue gains. Encouraged by these results, the OECD initiated a developement of internationally accepted standards and measures for the efficient involvement of digital platforms in the VAT/GST collection on online sales. The aim of this article is to present a short elaboration of the OECD practical guidelines and principles on the design and implementation of the possible solutions for involvement of e-markets and other digital platforms as a viable VAT/GST collection means. Eventually, it can serve as an initial frame for domestic and other authorities for the possible implementation of such a similar measure, especially in near future, as every additionally collected revenues may become more important.

Item Type:	Article
Subjects:	Social Sciences > Economics and business
Divisions:	Faculty of Economics
Depositing User:	Stevan Gaber
Date Deposited:	26 Jan 2022 08:21
Last Modified:	26 Jan 2022 08:21
URI:	https://eprints.ugd.edu.mk/id/eprint/29076

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