Indirect tax developments in 2016
Our latest publication identifies global developments in indirect taxes, including value-added tax (VAT), goods and services tax (GST), consumption taxes, excise duties, customs duties, insurance premium tax (IPT) and environmental taxes.
We highlight indirect tax changes introduced in more than 100 jurisdictions in recent months and those expected in 2016 and beyond. We also include world maps that provide a snapshot of where the changes are taking place.
Designed to increase your awareness and help you pinpoint the key developments that affect your business, these maps reflect the significant volume and breadth of indirect tax changes across the globe, allowing you to consider their impact and potential opportunities and obligations.
Three trends on the eve of the fourth Industrial Revolution
Indirect taxes are directly linked to the manufacture, distribution and sale of goods and services. As such they are intertwined with the business model of a company. But it is precisely these business models that might profoundly change during a “fourth Industrial Revolution” that will transform entire systems of production, distribution and consumption, profoundly challenging traditional tax models.
We identify some of the latest trends and developments in indirect taxes around the world:
1. Indirect taxes remain an important and reliable source of revenue for governments: VAT/GST rates in OECD member countries remain stable, even falling slightly in the EU, but globally rates increase, tax bases continue to expand, VAT/GST systems continue to spread worldwide and customs audit activity has seen a significant increase.
2. The digital revolution accelerates global tax frameworks and cooperation: digitization allows consumers to order goods from almost anywhere in the world, directly to their homes or replace orders of physical goods with downloads, causing governments to lose out on tax revenue. Around the world, tax and customs authorities are taking steps to protect these revenue sources.
3. The thirst for big data does not stop short of indirect tax: data management becomes more important for companies as the amount collected by tax authorities grows continuously; more countries require e-invoices and e-filing; governments begin to exchange data to facilitate multi-country audits.
To learn more or to discuss the changes necessary to address additional compliance and reporting obligations, please contact us.
Global Director of Indirect Tax