Approaches to the Audit of Companies Operating through ‘Sharing Economy’ Business Models

Ágnes Kővágó's picture
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A joint IOTA-EU workshop “Approaches to the Audit of Companies Operating through ‘Sharing Economy’ Business Models” was held on 22-24 March in Budapest hosted by the National Tax and Customs Administration of Hungary. 64 participants from IOTA member countries and Fiscalis sponsored countries attended this workshop which is part of series of common events between IOTA and the Taxation and Customs Union Directorate General (DG TAXUD) of the European Commission. Each joint event is organised on a specific topic where both organisations work together for strengthening the capacities of tax administrations.

Sharing economy is a rapidly developing trend within the digital economy. It refers to peer-to-peer sharing of goods and services where hidden business transactions are conducted through intermediaries (for some brokerage fee) or directly between the service provider and its customer. This makes it difficult for tax administrations to conduct traditional compliance actions to ensure the sharing economy businesses are accounting for their correct tax liabilities.

The workshop provided opportunity to participants to present and exchange knowledge about new business models, to discuss most recent cases and issues as well as to learn the different approaches being applied in ensuring that sharing economy businesses fully meet their tax obligations. Delegates listened to presentations of Austria, Hungary, Denmark, Estonia, European Commission, Czech Republic, Norway, Sweden, United Kingdom, France, Spain, Belgium and Luxembourg. Participants had also sessions where worked in groups and discussed issues such as general principles and sharing economy definitions and current audit approaches.

Further information about the workshop, including all presentations is available here for IOTA members.