The OECD has released the internationally agreed VAT/GST Guidelines, which have been expanded and approved.
The recommendations follow the release of a briefer document on the same, released in draft form in November 2015. The guidelines are intended to address the issues that arise from the uncoordinated application of national VAT systems in the context of international trade.
They focus in particular on trade in services and intangibles, which the OECD noted pose increasingly important challenges for the design and operation of VAT systems worldwide.
The standards include the recommended principles and mechanisms to address the tax challenges of the digital economy, being the focus of base erosion and profit shifting Action 1.
These Guidelines were adopted by the Council of the OECD in September 2016.