OECD Gives Guidance on Designing Digital VAT Reporting Systems

The OECD issued guidance Monday for countries looking to implement an automated transaction reporting system for value-added tax to encourage more consistent system designs.

The report, produced by the Organization for Economic Cooperation and Development’s Working Party 9, sets out six areas of focus for a tax administration to consider before adopting a “digital continuous transactional reporting” regime.

Countries seeking to apply such a system should develop a strategic approach for the design and allow governments to exchange information. They should also “embrace” the growing use of digital invoicing, ensure data security, facilitate compliance, and consider the ...