Rules For The Consumption Taxation Of Crossborder TradeIn the consumption tax area, the framework provides that taxation should occur in the jurisdiction where consumption taxes place, and that the supply of digitized products should not be treated as a supply of goods. It further provides that, where business and other organizations within a country acquire services and intangible property from suppliers outside the country, countries should examine the use of reverse charge, self-assessment or other equivalent mechanisms where this would give immediate protection of their revenue base and of the competitiveness of domestic suppliers. Finally, it provided that countries should make sure that appropriate systems are developed in co-operation with the World Customs Organization (WCO) and in consultation with carriers and other interested parties to collect tax on the importation of physical goods, and that such systems do not excessively encumber revenue collection and the efficiency of delivery of products to consumers.
The following questions have been addressed in this article:What are the consumption taxes
What are the consensus on consumption taxes which were reached by the OECD and the EU
Why online vendors have to pay any consumption tax?