Author: Iman Deschâtres

The enhanced significance of an online marketplace’s relationship with its sellers

Almost by stealth, and in just a few years, the role of marketplaces in the collection and remittance of taxes has changed immeasurably. We are not just discussing the world of VAT anymore; we are almost at the point where marketplaces are replacing tax authorities, especially when it comes to tax collection or indeed educating sellers of their tax responsibilities. …

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Selling online globally: the hidden complexities of filing and paying VAT

As new rules covering the cross-border supply of online sales rolled out globally, many businesses have been caught unawares by the hidden complexity of filing and paying VAT. It sounds like a simple process: filing and paying tax, it is anything but. These businesses invested a lot of time and resources on the registration side in anticipation of filing returns …

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DAC7 and the difficulties involved in data acquisition and validation

As the first DAC7 deadline approaches online platforms are beginning to squirm. Those platform operators with obligations to comply with the European Union’s (EU) DAC7 requirement had circled January 31, 2024, some time ago but now the reality is hitting home: acquiring data is difficult, validating it even more so. In this article we are focusing on the EU’s reporting …

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Assessing liability when multiple platforms are involved in an online sale is complicated

The terms ‘marketplace facilitator’, ‘intermediary’, ‘electronic distribution platform’, or ‘electronic interface’ are used across the globe in various tax rules to define the platform that is liable for the collection of VAT/GST/sales tax and are, effectively, interchangeable. There are many different platform business models and the OECD’s March 2019 report The Role of Digital Platforms in the Collection of VAT/GST …

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The Rise of the Platform Economy: Anticipating the needs of today & the future

We are moving to a future in commerce that goes beyond what we are used to today. That future is the platform economy where we will have access to everything, everywhere, all at once. While the multiple Oscar-winning movie of that name flows between different universes, consumers will flow between different platforms as well as platforms on platforms. Indeed, the …

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At your service: broadening a digital platform’s scope for VAT/GST liability

1. The perfect gig: tax authorities and online platform business models When tax authorities leverage your business model for the collection and remittance of tax then it should be treated as a badge of honour. This is precisely what has happened when focusing on the phrase ‘platform economy’. This phrase has become synonymous with forward-thinking initiatives by jurisdictions across the …

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The seismic shift where “tax just happens” is closer than you think

The world of taxation is on the cusp of seismic change, instant (or natural) taxation is on the lips of architects of tax administrations across the globe. What is it? How and when will it happen? Well, it is the giant leap where real-time transactions (made possible by the evolution of the internet) connect with real-time administration platforms to arrive …

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