Taxation of the digital economy through VAT / GST: challenges and solutions

Abstract

This article analyzes the challenges and solutions for taxing transactions in the digital economy through VAT - Value Added Tax, also known as GST - Goods and Services Tax. In the first part, the article demonstrates that VAT is still the best way to tax transactions carried out through the digital economy and presents the main challenges that VAT has faced on the international context in relation to these transactions. The second part addresses the taxation on services and intangibles supplied by non-residents, such as the registration and collection rules by the non-resident supplier and the reverse charge mechanism. Finally, the last part deals with the issue of taxing digital platforms through VAT.