Over 100 countries and jurisdictions endorsed the new OECD International VAT/GST Guidelines at a meeting of the OECD Global Forum on VAT in Paris last month.

The OECD’s International VAT/GST Guidelines set out international standards for the application of Value Added Tax/Goods and Services Tax to the international trade in services. These guidelines recommend rules for the collection of VAT on cross-border services, including internet downloads, to private consumers. According to the OECD’s press release, the decision to draft new guidelines was in response to growing concern from governments worldwide over the volume of cross-border services and online downloads on which no VAT is paid, particularly on products bought by private consumers from e-vendors outside their home jurisdiction.