The VAT liability of digital platforms: the EU rules in the light of the OECD Guidelines

Sammanfattning: Considering the growing role of digital platforms in e-commerce sales, countries have requested guidance on how to create efficient and effective rules regarding the liability for digital platforms to collect VAT on online sales of goods without creating undue administrative costs and compliance burdens. Therefore, in 2019, the OECD provided guidelines in this regard. The EU adopted the rules regarding the liability for digital platforms to collect VAT on the supply of goods already in 2017, causing the author to wonder if these new EU rules are in line with the OECD Guidelines. This thesis shows that the new EU rules comply with the OECD Guidelines on important aspects, like the operation of the full VAT liability regime for digital platforms, the broad definition of the term ‘digital platform’ and similar examples of functions considered relevant for enlisting digital platforms under the full VAT liability regime. Nevertheless, paragraph 4.2 has shown there are also many differences between the new EU rules and the OECD Guidelines. There are even several recommendations of the OECD that are not included at all in the new EU rules. To comply with the principles of legal certainty, fiscal neutrality and proportionality, the new EU rules should be revaluated and the recommendations given by the OECD Guidelines should be taken into account. The author is of the opinion that an approach whereby a digital platform is required to at least be involved in the establishment of the legal relationship between the parties of the supply and handles the payment itself to be liable to collect and remit the VAT could also be considered. This would make the rules less complicated and more effective and efficient for the digital platform as it would have all the information itself to be able to collect and remit the VAT to the tax authorities. It remains to be seen whether, and if so, in what way the new VAT liability rules for digital platforms will be amended. However, in the light of the findings presented in this thesis, it seems clear that the new EU rules should be further reviewed.