Annex E. A list of functions considered relevant for the application of the full VAT/GST liability regime (2019 Report on the Role of Digital Platforms in the collection of VAT/GST on Online Sales)

A non-exhaustive list of functions considered relevant for enlisting digital platforms under the full VAT/GST liability regime This table provides a non-exhaustive list of examples of functions that have been considered relevant by existing regimes for the eligibility of digital platforms for the full VAT/GST liability regime.
Examples of functions that may trigger the eligibility of digital platform for the full VAT/GST liability regime	Examples of functions that may exclude digital platform from eligibility for the full VAT/GST liability regime
Controlling and/or setting the terms and conditions of the underlying transactions (e.g. price; payment terms; delivery conditions, etc.) and imposing these on participants (buyers, sellers, transporters…);	Only carries content (e.g. makes only the Internet network available for carrying content via Wi-Fi, cable, satellite, etc.); or
Direct or indirect involvement in the payment processing (either directly or indirectly through arrangements with third parties, collect payments from customers and transmit these payments to sellers less commissions; obtain pre-authorisations or submit payment instructions or information to the platform’s own or to a third-party payment platform or to a platform stipulated in the terms and conditions set by platforms);	Only processes payments; or
Direct or indirect involvement in the delivery process and/or in the fulfilment of the supply (incl. influencing/controlling the conditions of delivery; sending approval to suppliers and or instructing a third party to commence the delivery; providing order fulfilment services with or without warehousing services);	Only advertises offers; or
Providing customer support services (returns and/or refunds/assistance with dispute resolution).	Only operates as a click-through/shopping referral platform. Such a platform only transfers via software, an Internet link or otherwise a potential customer to the website of a seller, thus enabling the discovery, promotion or listing of goods for sale by a seller. Customer and seller complete the transaction without any direct or indirect involvement of the digital platform in the setting of the terms of the underlying supply or in the payment or delivery process. Where such a platform’s fee is, however, calculated on the basis of the final consideration agreed between the customer and the underlying supplier, this may be an indication of an involvement in the underlying transaction that could bring the digital platform within the scope of the regime.
Source: OECD research

References

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