The Impact of the Growth of the Sharing and Gig Economy on VAT/GST Policy and Administration

This report aims at assisting tax authorities in designing and implementing an effective Value Added Tax/Goods and Services Tax (VAT/GST) policy response to the growth of the sharing and gig economy. The rise of this phenomenon, powered by digital platforms, has transformed a number of industries within just a few short years. It involves large numbers of new economic operators (often private individuals), who monetise (often) underutilised goods and services by offering these, via digital platforms, for temporary (“shared”) use by primarily private consumers. Questions have been raised whether existing VAT/GST policy and administration frameworks are sufficiently capable of dealing with this new economic reality notably with a view to protecting VAT/GST revenue and minimising economic distortions. This report sets out the core components of a comprehensive VAT/GST policy strategy for tax authorities to consider in response. It analyses the key features of the sharing and gig economy and its main business models; identifies the associated VAT/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.

Published on April 19, 2021Also available in: French


Executive Summary
Exploring the VAT/GST implications of the sharing/gig economy as part of the platform economy – a broad perspective
Addressing the VAT/GST implications of the growth of the sharing/gig economy: possible steps for a needs assessment and eventual policy action
Addressing the VAT/GST implications of the sharing/gig economy growth: A range of tax policy and administration options - The role of digital platforms
Compliance risk and enforcement measures to support VAT/GST policy and administration responses to the sharing/gig economy
Annexes5 chapters available
Other relevant OECD work on sharing and gig economy
Potential COVID-19 impact on the sharing and gig economy sectors
Model rules for reporting by platform operators with respect to sellers in the sharing/gig economy – Key features
Overview of business models of the accommodation and transportation sectors
A list of functions considered relevant for the application of the full VAT/GST liability regime (2019 Report on the Role of Digital Platforms in the collection of VAT/GST on Online Sales)
Powered by OECD iLibrary