Global VAT
This page describes the VAT Protocol of Open Treasury.
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This page describes the VAT Protocol of Open Treasury.
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A value-added tax, known in some countries as a goods and services tax, is a type of tax that is assessed incrementally. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer.
Pursuant to Foundation's objectives of disseminating open source intelligence on a learning platform, this economic activity is primarily VAT free, in most jurisdictions on the planet Earth.
a. The challenge exists in correctly computing VAT and deciding which party holds liability to collect and pay to an appropriate jurisdiction.
b. Further, it should be noted that the type of services delivered in the Foundation's value chain between the two parties are digital in nature.
The nature of services maintained by the Foundation, and distributed are in compliane with of the Foundation. For e.g: Services of Foundation classify as Research and Development in one jurisdiction, consulting or Intellectual Property(IP) transfer in another, while the IP itself is open sourced.
c. Therefore, as a global co-operative, the VAT obligations across different Fiscal Host(s) is a program specific treatment.
Global view: Fiscal Host(s) have to regularly review E-lease contracts and general terms and conditions, once VAT/GST obligations are triggered to clarify the VAT/GST obligations of each party, especially when the law provides for a VAT/GST inclusive computation.
If Foundation does not have a Fiscal Host in the jurisdiction of Local Law, Fiscal Host(s) of the network should be made aware that because these rules are relatively new, guidance available with respect to audits of nonresident vendors digital services is relatively sparse.
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