Category: E-commerce

Since 2015, the OECD and governments around the world have moved to tighten up the taxation of e-commerce.

 

There were 15 BEPS action plans. Currently the most important BEPS measures include:

 

  • Wayfair sales tax case in the US
  • EU VAT directives
  • Moves towards collecting taxes at source from online platforms
  • Digital service taxes in some countries on top of income tax and VAT.GST/sales tax
  • Pillar 2: 15% corporate income tax rate
  • MLI: Multilateral Instrument – really a super tax treaty that has rapidly updated around 2,000 bilateral tax treaties. Briefly, intercompany finance, warehousing and agency arrangements may be affected in various countries.
  • Amount B: Acceptable taxable profit margins for import subsidiary companies at a click.
  • And plenty more.

 

These are complex areas which came make the difference between multiple taxation or reduced taxation. Proper international tax advice is vital. We can help arrange this