CJEU - Recent Developments in Value Added Tax 2017

1. S. 143Introduction

In this chapter, we reflect on the issues discussed in the preceding chapter by Marie Lamensch and Charlène Herbain. In that chapter, the authors commence with observations about the traditional scope of VAT and then consider how the EU VAT deals with the challenges created by the sharing economy, “free” digital services, and crypto-currencies. We consider the same issues, in the same order, from the perspective of our own jurisdictions (Australia, South Africa, Singapore, and China).

Unsurprisingly, the analysis reveals that the digital economy issues facing these four non-EU VATs are much the same as those facing the EU VAT. In all four regimes, the treatment of the “sharing” part of the “sharing economy” depends on the character of the underlying supply and the treatment of such supplies in the relevant jurisdiction. In Australia, Singapore, and South Africa, substantial registration thresholds for small businesses have a significant impact on the VAT/GST treatment of the sharing economy, while in China the non-registration of individuals has a similar effect. Australia and South Africa have rules to tax inbound services using a foreign vendor registration regime, ...