International Tax Review is part of the Delinian Group, Delinian Limited, 8 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2023

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Global Tax 50 2016: Piet Battiau

Head of the consumption taxes unit at the OECD’s Centre for Tax Policy and Administration

Piet Battiau

Piet Battiau was also in the Global Tax 50 2015, 2014, 2013, and 2012

Piet Battiau has become a regular in the Global Tax 50, and is the only person to have been included in the feature every year since its inception in 2011 – the same year that he became head of the consumption taxes unit at the OECD's Centre for Tax Policy and Administration.

Since joining the OECD, he has worked on a variety of projects, but the OECD's greatest indirect tax achievement during his tenure was the release of the International VAT/GST Guidelines in 2015, and the work that preceded this.

Since the Guidelines were published, Battiau has been touring the globe to assist countries that have been implementing parts of the Guidelines on a bilateral and multilateral basis. Over the years, his work has focused more on the collection of VAT from online businesses – a key challenge for tax authorities and their systems worldwide.

"The work is very much focusing on countries' efforts to collect VAT, on the one hand from non-resident suppliers, which is the well-known issue and generally concerns online supplies, but also increasingly simply collecting VAT in an online environment, even if the vendors are in the country. Particularly when we're talking about pretty big countries." Battiau told International Tax Review.

"Also tax administrations are increasingly struggling and coming to us for discussions for assistance and implementing systems to collect VAT," he continued. "That's, of course, an area that features prominently in our Guidelines, but also features prominently in the BEPS Action 1 report."

It is for this reason that Battiau and the OECD are developing an implementation guide and a 'toolkit' to support countries in implementing mechanisms effectively and consistently. As discussed in-depth in ITR's cover story in the November 2016 edition, a key issue for businesses and governments is to implement tax rules for the digital economy consistently to avoid a convoluted web of laws that would be both costly for businesses to comply with and administratively inefficient for tax authorities.

Battiau and his team assist tax administrations around the world on a variety of issues, but he said that some of the most common are refund regimes, the organisation of export-related refunds to non-resident businesses, and how to create and operate these mechanisms.

"It's really about finding the balance between the importance of operating a refund mechanism from a business perspective and from an economic competitive perspective on the one hand, but on the other hand balancing that with concerns such as protection of revenue," he said. "It's often a very fine balance and it's difficult to give broad-brush advice in that area. So we have to look at the specifics of every country, the specifics of the economic environment and model, the compliance culture, the administrative capacity and all that."

Battiau picked out the example of India, which recently approved rules for taxation of online sales into the country.

"If you look at what has happened with India almost overnight with the implementation of the requirements for non-residents to register for service taxes, the regime is very much based on our Guidelines. [They were designed in such a way that] you could also implement them in a sales tax environment, and that's what India has done."

"The implementation of the Guidelines is massive. To see a country like India implementing a regime that is very much based on what we've done is huge in terms of impact on business and impact on revenue. We're very aware of our responsibility in that area in that we really work and try to work closely with governments and businesses to keep the compliance burden as low as possible and keep administrative efficiency as high as possible."

Another economic powerhouse that may be on Battiau's radar soon is the US, which is preparing for a fundamental tax reform. Although Battiau has not been in contact with the incoming Trump administration, a blueprint for corporate tax changes put forward by Paul Ryan, speaker of the US House of Representatives, shares some mechanisms with the OECD-style indirect tax recommendations.

"Some say that what is in the Ryan blueprint might become reality going forward. I don't have any specific information there, but that could include the implementation of the so-called destination-based cash flow tax. Some say that that is close to a VAT, to a subtraction type of VAT," Battiau said. Although Ryan's proposals are different from a VAT because it allows for the deduction of labour cost from the taxable base, Battiau said the mechanics might look a bit like a subtraction type of VAT.

"It's an area of personal interest, let's put it like that. In the sense that what's being proposed is a corporate income tax, it's a destination-based cash flow corporate income tax, but it has some similarities with a VAT, notably on how it would work in an international context with adjustments, zero-rating of exports, taxing of imports, etc."

During the next year, a key issue for Battiau and the OECD is likely to be online digital selling platforms such as eBay and Amazon, and how they can be part of the solution for the collection of VAT, GST and other taxes.

"What has become very clear, very rapidly, over the last few weeks even, is that one of our key priorities for next year is going to be around defining the role of platforms and typically the online platforms in a broad sense of the concept," he said. "I am focusing on VAT and GST, but this is a question which is cropping up more generally – how to ensure, on the one hand, the proper tax collection and on the other hand an even playing field in an environment where an increasing number of businesses are selling online."

The Global Tax 50 2016

View the full list and introduction

The top 10 • Ranked in order of influence

1. Margrethe Vestager

2. The International Consortium of Investigative Journalists

3. Brexit

4. Arun Jaitley

5. Jacob Lew

6. Antoine Deltour and Raphaël Halet

7. Operation Zealots

8. Guy Verhofstadt

9. Theresa May (and the 'three Brexiteers')

10. Donald Trump

The remaining 40 • In alphabetic order

Kemi Adeosun

Piet Battiau

Elise Bean

Monica Bhatia

Allison Christians

Tim Cook

Rita de la Feria

Caroline Flint

Judith Freedman

Chrystia Freeland

Pravin Gordhan

Orrin Hatch

Meg Hillier

Mulyani Indrawati

Lou Jiwei

Paul Johnson

Stephanie Johnston

Chris Jordan

Pravind Jugnauth

Wang Jun

Jean-Claude Juncker

Kathleen Kerrigan

Christine Lagarde

Werner Langen

Jolyon Maugham

Angela Merkel

Narendra Modi

Will Morris

Michael Noonan

Grace Perez-Navarro

Platform for the Collaboration on Tax

Donato Raponi

Pascal Saint-Amans

Heather Self

Robert Stack

Tax Justice Network

The Gulf Cooperation Council (GCC)

Transparency International

US Committee on Ways and Means

Rodrigo Valdés

more across site & bottom lb ros

More from across our site

The forum heard that VAT professionals are struggling under new pressures to validate transactions and catch fraud, responsibilities that they say should lie with governments.
The working paper suggested a new framework for boosting effective carbon rates and reducing the inconsistency of climate policy.
UAE firm Virtuzone launches ‘TaxGPT’, claiming it is the first AI-powered tax tool, while the Australian police faces claims of a conflict of interest over its PwC audit contract.
The US technology company is defending its past Irish tax arrangements at the CJEU in a final showdown that could have major political repercussions.
ITR’s Indirect Tax Forum heard that Italy’s VAT investigation into Meta has the potential to set new and expensive tax principles that would likely be adopted around the world
Police are now investigating the leak of confidential tax information by a former PwC partner at the request of the Australian government.
A VAT policy officer at the European Commission told the forum that the initial deadline set for EU convergence of domestic digital VAT reporting is likely to be extended.
The UK government shows little sign of cutting corporate tax, while a growing number of businesses report a decline in investment as a result of the higher tax burden.
Mariana Morais Teixeira of Morais Leitão overviews Portugal’s new tax incentive regime designed to boost the country’s capital-depleted private sector.
Septian Fachrizal, TP analyst at the Directorate General of Taxes, outlines how Indonesia is relying heavily on the successful implementation of pillar one.