Notes on the third Meeting of the Global Forum on VAT/GST held in Paris on 5th and 6th November
The third Meeting of the Global forum on VAT/GST was held in Paris on 5th and 6th November and the IVA was represented by Stephen Dale and Mike Molony.
Senior policy representatives from some 104 Countries attended, together with members of the OECD, the European Commission and a small number of business delegates representing global businesses, under the BIAC banner.
The agenda is attached and one of the main areas for discussion was the finalisation of the outstanding points of the OECD's Guidelines on B²B and B²C supplies of services and intangibles. These Guidelines are intended to act as Global Standards for the VAT/GST treatment of International trade in services and Intangibles and serve as a reference point for designing and implementing legislation with a view to minimising unintended non taxation or double taxation.
The overarching purpose of a VAT/GST is as a levy on final consumption and for services to be taxed at the place of destination for both B²B and B²C supplies, with the revenues accruing to the jurisdiction where the supply to the final consumer occurs. The application of the destination principle in VAT achieves neutrality in International trade.
On the Wednesday preceding the Global Forum, Mike Molony, as part of a BIAC delegation; made a presentation to the CFA (Committee on Fiscal Affairs at the OECD), through its Working Party No 9 (WP9) on the further work that needs to be undertaken to further extend and improve the Guidelines.
The main recommendations were as follows:
The Agenda for The Global Forum on VAT included the following:
There were breakout sessions held, where all attendees discussed each topic and the feedback was consolidated and discussed at the General Forum.
1) Extend the current single electronic registration and payment to Intra EU supply of goods and also to third countries
2) Introduce a common threshold to help small startup businesses
3) Allowing home control audits including a single audit for cross border purposes
4) Removing the VAT exemption for the importation of small consignments from suppliers in third countries.
5) Complete further work to design an even more inclusive framework to support especially developing countries
IVA Sponsored Cocktail event
The OECD, The Commission and BIAC representatives expressed their grateful thanks to the IVA for sponsoring the event. At the reception a short presentation was made where we were able to explain the background to the IVA, and Business members were encouraged to join.
A number of businesses present requested further information on the IVA and expressed an interest in joining. A business card from the IVA and a pen with the IVA was presented to each member attending.
Sponsoring the cocktail has really increased the visibility of the IVA, many businesses and governments from around the world have shown an interest in what the Association does. This can only help improve relationships and ensure a simpler and fair application of the VAT rules - globally.
Disclaimer: The information contained in the present page is general and does not constitute legal advice. Before taking any decision or action on the above information you should take the appropriate professional advice.