– DAGTVA truth table –
DAGTVA® – The linkage rules of the taxation system
|No.||Problems exposed, requests, constraints and subjects||Origin||Pg||Li||Ref.|
|26||New rule with sale thresholds to be defined (2).||Pillar 1||9||19||RLSad|
Quote : The new nexus rule would address this issue by being applicable in all cases where a business has a sustained and significant involvement in the economy of a market jurisdiction, such as through consumer interaction and engagement, irrespective of its level of physical presence in that jurisdiction. The simplest way of operating the new rule would be to define a revenue threshold (RLSca – RLSad) in the market (the amount of which could be adapted to the size of the market) as the primary indicator of a sustained and significant involvement in that jurisdiction
DAGTVA is based on a taxation model linked to transactional transactions, which by definition, does not apply a turnover threshold. The smallest company wishing to occasionally export a production would have as only constraint that of being referenced in its tax authorities which would authorize the transaction as explained in the procedure below:
- Authorization to continue the transaction (slide 14), the exporting company must normally be registered with its tax authorities so that they give the export authorization in compliance with the agreements of the OECD article 7,
You can also refer to the RLSca page which also deals with a link rule based on a turnover threshold.