Perspectives

Global Indirect Tax BEPS/Global Tax Reset Survey 2016

In Summer 2016, Deloitte undertook a survey of those attending our Global Indirect Tax client conference in Madrid to seek their views on the Indirect Tax implications of BEPS. Corporate income tax and transfer pricing changes have been well publicized, but the indirect tax specific implications of BEPS are also far-reaching. Below is a visual representation of the main findings which were provided by more than 280 tax professionals from companies with presences through Europe and the rest of the world.

The OECD's Base Erosion and Profit Shifting ("BEPS") project is perhaps the most significant event in international taxation for many decades. The BEPS program seeks to increase transparency and information sharing between tax authorities and counter perceived imbalances by creating an environment that taxes profits in the country where value is added. The consequences of these changes are diverse and multi-faceted - in effect a Global Tax Reset is happening.

Key findings:

  • 92% of businesses are considering the impact of BEPS; however it is concerning that only 25% of indirect tax teams have close involvement in these discussions
  • Over 50% of respondents think that BEPS will make international VAT/GST harder to manage
  • Over 80% of respondents think that either BEPS will create greater uncertainty in relation to the VAT/GST treatment of cross-border transactions, or can’t be sure if it will
  • There are a variety of views on whether the amount of indirect tax companies pay will increase or decrease as a result of BEPS

Global Indirect Tax: BEPS - Global Tax Reset - Survey 2016

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BEPS and Indirect Tax

Understanding the touchpoints and implications for businesses