VAT/GST treatment of cross-border services - KPMG Global
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VAT/GST treatment of cross-border services

VAT/GST treatment of cross-border services

A summary of the requirements and rules that apply to electronically supplied services across the globe.


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Indirect Tax Electronically Supplied Services Survey 2017

When VAT and GST systems around the world were first being developed, the digital economy did not exist. Services could not be supplied to consumers cross-border into another jurisdiction without the service provider having an office or other bricks and mortar presence. However, the digital economy is now the real economy. Businesses can supply digital content such as films, music, news, data hosting and storage (e.g. cloud computing), online gaming, telecommunications, payment services and advertising – all supplied remotely. And in the future with developments in technology such as 3-D digital printing, artificial intelligence, robotic process automation, the growth in electronic services is expected to be exponential.

Not surprisingly, governments around the world have been struggling to adapt their VAT and GST systems to meet this challenge. Spurred on by the OECD, this survey looks at how 54 countries around the world have either implemented, or are considering implementing, changes to their VAT and GST systems to recover the tax. The challenges for service providers in implementing these changes is immense, with potentially multijurisdictional tax obligations arising merely by virtue of where their customers are situated around the world. This survey provides a valuable reference source to assist those service providers to meet the challenge of complying with their VAT and GST obligations in the digital economy.

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