The future of indirect taxation in a digital world

In the lead up to 2020, policymakers globally sought to tax the digital economy through indirect taxation systems such as VAT or GST. They aimed to apply taxes to digital business activities in line with traditional businesses, ensure taxes are collected where consumption occurs, and impose obligations on digital platforms for tax collection. These measures aimed to tax final consumption expenditure in the consumer’s jurisdiction, resulting in increased revenues for tax authorities.

Source KPMG

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