Addressing the Tax Challenges of the Digital Economy, Action 1 - 2015 Final Report [electronic resource] /
Organisation for Economic Co-operation and Development.
Paris : OECD Publishing,
2015.
The spread of the digital economy poses challenges for international taxation. This report sets out an analysis of these tax challenges.  It notes that because the digital economy is increasingly becoming the economy itself, it would not be feasible to ring-fence the digital economy from the rest of the economy for tax purposes. The report notes, however, that certain business models and key features of the digital economy may exacerbate BEPS risks, and shows the expected impact of measures developed across the BEPS Project on these risks.  The report also describes rules and implementation mechanisms to enable efficient collection of value-added tax (VAT) in the country of the consumer in cross-border business-to-consumer transactions, which will help level the playing field between foreign and domestic suppliers. The report also discusses and analyses options to deal with the broader tax challenges raised by the digital economy, noting the need for monitoring developments in the digital economy over time.
Chapter 1. Introduction to tax challenges of the digital economy Chapter 2. Fundamental principles of taxation Chapter 3. Information and communication technology and its impact on the economy Chapter 4. The digital economy, new business models and key features Chapter 5. Identifying opportunities for BEPS in the digital economy Chapter 6. Tackling BEPS in the digital economy Chapter 7. Broader direct tax challenges raised by the digital economy and the options to address them Chapter 8. Broader indirect tax challenges raised by the digital economy and the options to address them Chapter 9. Evaluation of the broader direct and indirect tax challenges raised by the digital economy and of the options to address them Chapter 10. Summary of the conclusions and next steps Annex A. Prior work on the digital economy Annex B. Typical tax planning structures in integrated business models Annex C. The collection of VAT/GST on imports of low value goods Annex D. OECD International VAT/GST Guidelines - Chapter 3 Annex E. Economic incidence of the options to address the broader direct tax challenges of the digital economy
The spread of the digital economy poses challenges for international taxation. This report sets out an analysis of these tax challenges.  It notes that because the digital economy is increasingly becoming the economy itself, it would not be feasible to ring-fence the digital economy from the rest of the economy for tax purposes. The report notes, however, that certain business models and key features of the digital economy may exacerbate BEPS risks, and shows the expected impact of measures developed across the BEPS Project on these risks.  The report also describes rules and implementation mechanisms to enable efficient collection of value-added tax (VAT) in the country of the consumer in cross-border business-to-consumer transactions, which will help level the playing field between foreign and domestic suppliers. The report also discusses and analyses options to deal with the broader tax challenges raised by the digital economy, noting the need for monitoring developments in the digital economy over time.
Taxation