The VAT rules aimed at the digital economy are designed to create a level playing field between domestically purchased services and those provided remotely so that a savvy consumer would not receive a price reduction from simply buying certain services from abroad or a business would not receive an undue economic advantage simply from being established abroad. However, policymakers and the citizenry are often more focused on whether digital economy companies pay their fair share of income taxes in their jurisdictions.
Source KPMG
