By Jean-François Clocheau
– Creator of DAGTVA –
Published the 7 February 2019
Since I have created DAGTVA in 2011/2012, I have explain in this website and in the last articles (links below) that, at term, with the digitalisation of invoicing and payments, all the countries will withhold the tax applied on the transaction directly on payments.
– These possibilities open the way where inside a cross-border transaction, there is no tax (the fiscal value) in the seller payment, where it is paid NET amount.
– I have written too that it was the aims of the European Commission, OECD and WTO to see, in the future, the indirect taxes on consumption levied in the country of this consumption.
– I have written also that the creation of a border is justified to control the commerce of goods. The subject of this article is not to speak about Schengen then, we can concentrate our attention to acknowledge why this border must be created.
– To continue, I have written in this slideshow: The déclarative system on cross-border transactions – On this page in French.
I quote: » Slide 26: In many countries, the tax authorities and the customs service are the same entity.
As you saw on the previous slide, border control can take place when the package arrives at the border. This is the procedure applied today.
With Dagtva, the customs control is done well before, when the invoice is created. The tax identification of the parcel is done by QR code or barcode when the tax declarations is made (or are concordant between the seller and the buyer in a version more complete). The tax identification by a label, sent by the buyer’s tax authority by email to the seller, is stuck on the package. With this system, customs control can take place, not only at the border, but everywhere with a simple Internet connection through a phone with a barcode reader.
The DAGTVA declarative system applied on cross-border transactions makes it possible to check and to follow everywhere if a parcel is regularly declared, even if the transport passes in transit by a third or more States not concerned by the transaction.”
It is exactly that « MTD » can does and, it is now very easy to envisage useless to implement a border between UK and: Irish Republic, other countries in Europe or elsewhere.
It is this, may be in this 7 February 2019, this same solution which is in negotiation by the Prime Minister Theresa May in Brussels, after the Parliament decision in UK.
It is, without context the most elegant solution to solve the withdrawal of UK and the problem of Brexit in a context where borders are useless and it is, in this case, unnecessary to modify the « Good Friday » agreement.
In all cases, now or later, this situation will append with the electronic billing systems close to and described by DAGTVA® in 2012, around the world and if it is impossible to escape of this, then why not apply these directives now when in the coming years. All the European countries will have digital tax statements to the tax authorities, soon in Italy, Greece, Portugal, Hungary, Romania, France, etc. as is already in function in Spain with « SII » or China for example and so on. UK with “MTD” will join in April 2019 the list, outside the EU, of multinational countries with the GCC, India where this system was implemented in only in a six months.
This new configuration of taxation prefigure the world single Market .
The tax system DAGTVA is independent of the tax system used : VAT – ART – GST – TPS and can be used without modification between different tax systems in the same transaction.
For The Brexit, borders must be on invoices not between countries.
It is also stupid to want borders now and later, in a few weeks, a free trade agreement for trade like now!
The related articles on the front page of DAGTVA :
26 January 2019 – Brexit UK May be win.
17 January 2019 – Brexit solution – After the Parliament decision to refuse the « Deal »
14 & 19 November 2018 – After the draft Brexit deal. A pebble in the European shoe with Gibraltar –
14 October 2018 – the end of the actual European Single Market
4 October 2018 – Brexit and the future of VAT.