The OECD has opened a public consultation on how value added taxes or goods and services taxes should be applied to the cross-border trade of services and intangibles.
Member states have agreed that 'internationally traded services and intangibles should be taxed according to the rules of the jurisdiction of consumption' and that 'the burden of value added taxes themselves should not lie on taxable businesses except where explicitly provided for in legislation'. They say this means 'jurisdiction of consumption' will need to be defined better if these principles are to find their way into guidelines.
The consultation period is open until April 30 2008.
