Ocupación de los miembros de las familias

Boku is a mobile payment services provider, enabling people across the globe to pay for the things they are interested in using the one device they’re never without, their mobile phone. The company contracts with content providing merchants to collect payments on their behalf. The company then sub-contracts with Mobile Network Operators or “Carriers” – sometimes via other intermediaries – to collect the payments from final consumers. There may also be additional intermediaries in the beginning of the chain between Boku and the content providing

merchant. Therefore the longest chain in the payment collection that we tend to see can include five unrelated and separate companies.

Comments:

Based on experience from our role in the payment collection services chain and in response to the particular questions posed we would make the following comments:

• Whether it is possible to ring-fence the digital economy from the rest of the economy, and if not, whether specific types of digital transactions could be identified and addressed through specific rules; • The key features of the digital economy identified by the Task Force and whether there are other key features that should be taken into account;

Response - the risks of using the current VAT regime to resolve where the liability for paying VAT in cross border e-commerce transactions mean that these can identify a business as supplier where this is not the case and therefore include any other legal obligations belonging to that transaction that should properly belong to the original supplier. Some countries like Italy and Germany take the view that if a business remits the VAT that all other legal obligations accompany the VAT liability. This is an issue that should be taken into account.

• The examples of new business models in the digital economy and whether (and if so which) other business models should be considered;

Response - It should be noted that not all e-commerce services will be subject to VAT at standard rates, for example payment by mobile phone is starting to expand to cover other types of transactions such as online gambling, which is generally VAT exempt in the UK and instead subject to other duties which are applied differently, or services like parking are also effectively arranged and paid for online but again may be subject to different tax treatments. Also confusion arises around various different methods of digital payment methods and whether these fit within Payment Services legislation, for example e- money, or are instead varieties of “VATable” voucher type arrangements. This confuses the issue of

what the tax points are for e-commerce services which also impacts on who is liable to pay the tax. Any resolution of the VAT issue should address these points so that tax is only liable once.

• The ability of the measures developed in the course of the BEPS Project and the current work on VAT/GST to address BEPS concerns in the digital economy;

• Whether other measures should be developed during the course of the work on other aspects of the BEPS Action Plan to address BEPS concerns in the digital economy and if so which ones;

• The broader tax challenges raised by the digital economy which have been identified by the Task Force and how these challenges should be addressed, taking into account both direct and indirect taxation; • The options to address these broader tax challenges discussed by the Task Force and summarised in the discussion draft;

Response - potentially a withholding VAT type system could work on the basis that this would be

collected by the payment collection business without any accompanying other legal and product liabilities or other responsibilities. To avoid double taxation it would be suggested that where verified local VAT registration numbers are provided by the relevant supplier withholding VAT would not be applicable. This would have the benefit that it would be clear who would remit the VAT – either the payment collector or the supplier where a local VAT registration number was provided. This could solve the problem of enforcing local registration which in the EU has been found to be extremely difficult.

• The potential cost of compliance arising from the options proposed to address the tax challenges of the digital economy and suggestions for more cost efficient alternatives;

• Whether the Ottawa taxation framework principles identified above are an appropriate framework for analysing options to address the tax challenges, and whether and how they should be supplemented. Greta Kemper

Global Indirect Tax Manager Boku

British Sky Broadcasting Ltd, Grant Way, Isleworth, Middlesex TW7 5QD

Call 0870 240 3000 Fax 0870 240 3060 Visit Sky.com

Information in this fax is confidential and may be privileged. It is intended for the addressee only. If you have received it in error, please notify the sender immediately. You should not otherwise copy it, refax it or use or disclose its contents to anyone.

Page 1

The Committee on Fiscal Affairs

OECD

2 rue André Pascal