Consumption Tax Topics that OECD will probably address - 1
Calculating the correct tax
- Calculating the tax due requires information on:
- place of "consumption"
- identification and location of parties involved, and
- the type of product(s) being purchased
- Where's the place of consumption?
- if you're buying digital goods - e.g. video on demand vs. software?
- if you're in France when you order from the UK for delivery in the US
- How do you know the person buying or selling is who they say they are?
- considering digital certificates and smart cards to identify the "tax home"
- Classification of products
- the same product can be classified in different ways in different countries. Currently very complex. A simpler approach would be easier to implement
- how do you classify products (e.g. software) that can be bought either on-line or in a store
- should eCommerce and real-world transactions calculate tax differently?