Peace, Justice and Strong Institutions

This report provides an overview of the significant implications and challenges of e-commerce for taxation authorities based on the policies put in place by several countries. Understanding different approaches to e-commerce and taxation is important to facilitate international trade and online commerce. The report identifies key concerns that need to be addressed in term of policies and implementation mechanisms. Based on the various experiences at the global regional and national level it considers possible future policy options taking the concerns of all stakeholders into account. The role of tax administrations has to evolve to keep abreast of the pace of change of new technologies and the economic landscape. Tax administrations are exploring innovative solutions to strengthen domestic resource mobilization and stabilize finances greatly needed for investments in development. This report presents an overview of the different strategies solutions technical instruments and approaches being used in various countries in the area of indirect taxation of domestic and cross-border e-commerce. It surveys and analyzes pertinent legal and policy issues that policymakers NEED TO consider in this context.

This annex presents contributions highlighting various approaches along with associated policy considerations provided by selected countries private sector representatives academics research institutions international and regional organizations. The contributions can serve as a reference point to assist policymakers in their efforts to evaluate and develop legal and administrative measures that reflect economic legal institutional cultural and social circumstances.

Digitalization of economies has led to a surge in e-commerce and digital trade around the world. It has also accelerated the development of a range of innovations being undertaken by tax administrations both in how they interact with taxpayers and in their internal operations. With the ongoing shift to digital services and digital channels dominating interactions with taxpayers adequate taxation of e-commerce has become an urgent financial and policy priority.

The present report Indirect Taxation of E-commerce and Digital Trade: Implications for Developing Countries was prepared under the overall guidance of Shamika N. Sirimanne Director of the UNCTAD Division on Technology and Logistics by a team comprised of Torbjörn Fredriksson Christopher Grigoriou (consultant) Grégoire Rota-Graziosi (consultant) Cécile Barayre Andrew Williamson and Rodrigo Saavedra. Contributions by Daniel Ker Smita Lakhe and Thamara Romero are also appreciated.

Under Article 102 of the Charter of the United Nations every treaty and every international agreement entered into by any Member of the United Nations after the coming into force of the Charter shall as soon as possible be registered with the Secretariat and published by it. Furthermore no party to a treaty or international agreement subject to registration which has not been registered may invoke that treaty or agreement before any organ of the United Nations.