VAT in the Digital Era: Unilateral and Multilateral Options for Reform

With the growth of the digitalized economy, VAT on cross-border digital supplies has emerged as an important issue. Yet, views and practices regarding the application of the VAT on these supplies differ significantly across different jurisdictions. A lack of international VAT harmonization can cause double taxation or unintended double non-taxation, resulting in distortions and revenue losses. VAT in the Digital Era considers unilateral and multilateral options for the creation of an internationally coordinated VAT framework. Providing analysis of the status quo in key jurisdictions, the book explores the implications of the digitalized economy for the VAT systems across borders. It outlines possible approaches that can be taken to achieve a more consistent international VAT treatment of cross-border supplies, and the extent to which a multilateral solution would be preferable and achievable at the international level. Bringing together contributions from leading international voices in the VAT law and policy and international taxation fields, VAT in the Digital Era addresses current issues and proposes ways to coordinate VAT rules on cross-border digital supplies. This new book is essential reading for academics, researchers, governments, and other financial organisations involved with the world's most important indirect tax.

Table of Contents:
Part I: Inroduction 1: Yan Xu: VAT in the Digital Era: Responses and Prospects Part II: Jurisdictional Experiences 2: Edoardo Traversa, Marie Lamensch , and and Elena Masseglia: Digital Supplies in a Cross-border Context: the EU Perspective on VAT Coordination 3: Robert van Brederode: US Sales Taxes on Cross-Jurisdictional Transactions 4: Yige Zu: China's VAT in the Digitalized Economy 5: Kathryn James: 'Operation Netflix': A Review of Australian Reforms to Apply the Goods and Services Tax to Inbound Cross-border Supplies in the Digital Economy 6: Yumi Nishiyama and Richard Krever: The Digital Economy Challenges to Japanese Consumption Tax 7: Stephanus van Zyl: VAT and Digital Supplies: A South African Perspective Part III: International Guidance, Lessons and Prospects 8: Rebecca Millar: A 'Model Framework' for Applying Consumption Taxes to International Services and Intangibles: Are We There Yet? 9: Joachim Englisch: Lessons from EU VAT Harmonization 10: Walter Hellerstein: The Role of Platforms in the Collection of Consumption Taxes in the Digital Economy: Lessons from the US State Experience 11: Roderick Cordara: Brexit and VAT 12: Wolfgang Schön: Some Thoughts on the Relationship between the Destination Based Cash Flow Tax and VAT 13: Reuven S. Avi-Yonah: The Origins of Destination-based Income Taxation: US and International Tax Perspectives 14: Lachlan Wolfers and Philippe Stephanny: The Future of Indirect Taxation in a Digital World 15: Yan Xu and Michael Walpole: The Holy Grail of International Consistency in VAT Administration