A Hitchhicker's Guide to the OECD's International VAT/GST Guidelines

With expectations appropriately lowered as to what to expect from an article devoted to VAT issues, I hope that what follows will, at a minimum, persuade readers that there is more to VAT than cash-flow and, with any luck, pique some interest in the challenges that VATs confront-and that the Guidelines have sought to address-with respect to international trade in services and intangibles. Part II of this Article provides the background to the Guidelines, describing the basic features of a VAT, the problems with which the Guidelines are concerned, and a brief history of the OECD's efforts to address these problems. Part III discusses the Guidelines' neutrality principles. Part IV discusses the general rules applicable to business-to-business (B2B) transactions.

Part V discusses the general rules applicable to business-to-consumer (B2C) transactions. Part VI discusses specific rules for particular types of supplies. Part VII discusses the Guidelines' recommendations designed to support a consistent interpretation of the Guidelines, including the use of mechanisms for mutual cooperation and exchange of information and other arrangements allowing tax administrations to work together. Part VIII concludes.