Digital platforms have an important role to play in the gig economy

The rise of the sharing and gig economy powered by digital platforms has raised concerns over whether existing VAT and GST frameworks are capable of protecting revenues.

In response the Organisation for Economic Co-operation and Development has published a report The Impact of the Growth of the Sharing and Gig Economy on VAT/GST Policy and Administration presenting a range of solutions for the application of VAT and GST to such platforms.

It analyses the key features of the sharing and gig economy and its main business models; identifies the associated VAT and GST challenges and opportunities; and presents a wide range of possible measures and approaches to support an effective policy response. This includes detailed guidance on the possible role of digital platforms in facilitating and enhancing VAT/GST compliance in the sharing and gig economy.

The aim is to ensure a...