OECD report: Value added tax policy in the sharing and gig economy

The OECD has published a report on how digital platforms can play an important role in the application of VAT/GST policies in the sharing and gig economy.

‘The Impact of the Growth of the Sharing and Gig Economy on VAT/GST Policy and Administration’ report aims at assisting tax authorities in designing and implementing an effective VAT/GST policy response to the growth of the sharing and gig economy.

The report also sets out the core components of a comprehensive VAT/GST policy strategy for tax authorities. It analyses the key features of the sharing and gig economy and its main business models; identifies the challenges it creates for VAT/GST collection and administration, and presents a range of measures to address these challenges. The report includes detailed guidance on effective solutions for sharing and gig economy platforms in providing information to tax authorities and in collecting the VAT/GST on the activities that they facilitate, building on the OECD's Model Rules that require digital platforms to collect information on the income realised by those offering accommodation, transport and personal services through platforms and to report the information to tax authorities.