VALUE Added Tax is a key source of revenue for more than 150
countries worldwide, but the uncoordinated application of national VATs to
international trade remains problematic. Governments are losing out on tax
revenues, due to under-taxation, while the risk of double taxation poses increasing
obstacles to international trade, particularly in the booming international
services trade.
To address these concerns, the OECD has worked with countries worldwide on
a new set of International VAT/GST Guidelines, which should become the global
standard for the application of this tax to international trade. The Guidelines
provide standards on key aspects of international VAT design and operation
that will ensure neutrality in cross-border trade and the coherent allocation
of countries’ taxing rights on business-to-business (B2B) trade in services.
The OECD will present the new standard to high level representatives of countries
and jurisdictions, international organisations and businesses from around the
world during the Second Meeting of the OECD Global Forum on VAT in Tokyo on
17-18 April 2014.
Japanese
Minister of Finance Taro Aso will open the meeting on 17 April.
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