Cross-Border Consumption Taxation of Digital Supplies

This study compares cross-border consumption taxation of digital supplies in business-to-consumer transactions from an international coordination perspective. Hence, the various classifications of digital supplies and the provisions for deciding the place of taxation are compared and examined to identify cases of double taxation and unintentional nontaxation or potential risks thereof. In addition, possible remedies for double taxation and unintentional non-taxation are discussed. The findings in this study are evaluated on the basis of rationality, which refers to the consumption taxation upholding the principles that are part of the OECD models and the Ottawa Taxation Framework Conditions. The analysis is based on an evaluation model derived from the principles that are part of the Framework Conditions. These principles are: neutrality, efficiency, certainty and simplicity, effectiveness and fairness, and flexibility.