On November 6, 2015 the OECD announced that governments had taken an important step towards ensuring that consumption taxes on cross-border transactions are effectively paid in the jurisdiction where products are consumed, while minimizing the risks that uncoordinated tax rules distort international trade.

At the OECD Global Forum on VAT meeting held on November 5th and 6th, more than 100 countries and jurisdictions expressed their intention of endorsing the new OECD International VAT/GST Guidelines as the preferred international standard for coherent and efficient application of Value Added Tax/Goods and Services Tax to the international trade in services.

A new chapter was added to these Guidelines recommending rules for the collection of VAT on cross- border services -including Internet downloads- to private consumers (Business to Consumer, or B2C Guidelines). According to the OECD the Guidelines recommend that foreign sellers register and remit tax on sales of e-books, apps, music, videos and other digital goods in the jurisdiction where the final consumer is located. The Guidelines also include a recommended mechanism to ensure the effective collection of VAT by tax authorities from foreign sellers, thus helping governments to protect VAT revenues and levelling the playing field between domestic and foreign suppliers.

For further information please consult the following OECD's link:

http://www.oecd.org/tax/consumption/oecd-delivers-international-standard-for-collection-of-vat-on- cross-border-sales.htm

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