Guidelines On Definition Of The Place Of Consumption For Consumption Taxation Of Cross-border Services And Intangible PropertyThe Guidelines on Definition of the Place of Consumption for Consumption Taxation of Cross-Border Services and Intangible Property, define the place of consumption for consumption tax of Business-to-business transactions (B2B) and business to private consumer transactions (B2C). These guidelines, should achieve a practical application of the Taxation Framework Conditions in order to prevent double taxation or unintentional non-taxation within international cross-border of electronic commerce.
The following questions have been addressed in this article:Are there any recommendation that has been made by countries which feel that it would be appropriate to put into effect a registration system in respect of non-resident vendors of services and intangible property that not currently registered and not required to be registered for that country's tax?
How practical the pure consumption test is?
Is some type of verification necessary even in circumstances where the intangible service or product is not subject to tax in the jurisdiction of the customer?