Cross-border E-shopping may be subject to a wider taxation
In an effort to collect more tax eluding from cross-border transactions carried out online, the OECD is calling on governments to try to collect more tax revenue.
E-shoppers may need to pay more taxes for any goods purchased on E-commerce website from overseas, as the OECD considers governments don’t apply enough efforts to collect tax revenue that responds to the transactions being made online.
As a result of this initiative, online shoppers are likely to end up paying more taxes in the near future for goods they purchased over the internet and shipped to their country. This recommendation will be applied if the countries adopt the Organisation’s for Economic Co-operation & Development proposals.
Due to the fact that countries have adopted different tax legislation on imported goods bought online, hence being charged for a purchase in excess of a specific amount of money, several people spread out their purchases to avoid being taxed.
This exertion comes in the efforts of the OECD to fight offshore tax avoidance, the so called Base Erosion & Profit Shifting (BEPS).
Similar attempts are taking place for the taxation and the relevant collection of that revenue deriving from the “digital economy” and more specifically, for the VAT.
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