On-demand adózás: Az igény szerinti gazdaság megadóztatásának kihívásai

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  Quantumrun Foresight
• December 8, 2022

Insight összefoglaló

The on-demand economy—comprising of gig workers and on-demand manufacturing and services (e.g., Uber and Airbnb)—has experienced dramatic market adoption, especially since the onset of the COVID-19 pandemic. As this sector continues to grow, so do the opportunities and challenges in taxing it. The long-term implications of this trend could include global taxation standards and more research on automated taxation technologies.

On-demand taxation context

The Intuit Tax & Financial Center projected that in 2021, the number of people working on-demand jobs reached 9.2 million compared with 7.7 million in 2020. In a survey conducted by Intuit, about 11 percent of respondents said they switched to freelancing and part-time work because they couldn’t find a suitable full-time job. However, the majority indicated that they proactively decided to join the gig economy because they wanted greater control over their professional lives and to diversify their incomes.

As expected, taxation for this sector can be problematic, as most gig workers have to file taxes independently. In addition, many businesses that provide their services on-demand often mix their business and personal expenses together in a single bank account, which can cause confusion when understanding tax obligations.

Another taxation challenge is the manufacturing industry shifting to the on-demand business model, which doesn’t follow the traditional linear production method. Industry 4.0 (the new era of digitized businesses) rewards enterprises that provide goods based on data analytics about customer preferences, behaviors, and trends. In addition, complexity and fragmentation have increased in the supply chain, production, and demand; goods may be sourced from various providers, shipments can come from a wide range of locations, and customization is increasingly expected at the local or individual level.

As plans change last minute, companies might not always know their vendor sources in advance. They could be selected from a list located in different countries and subject to various indirect tax rules. In addition, some transactions and flows of goods may have customs duties while others are exempt.

Bomlasztó hatás

A major question asked about on-demand companies like Uber and Airbnb is if the sales they go through are subject to taxes, such as sales tax, lodging tax, or gross receipts tax. It’s only fair to tax entities that provide similar services to other companies already being taxed, such as taxis and hotels. Further, it is critical to preserve public funds by ensuring that new types of business do not result in a decline in revenue. As the economy rapidly changes, the tax system must evolve along with it. Modernizing the consumption taxes may require changing definitions in outdated laws, or regulations affirming that existing rules apply to the on-demand sector.

For gig workers, self-service technology and platforms will go a long way to making filing taxes easier by automating the entire process. Often, filing taxes as an individual in most countries would require a bookkeeper, an accountant, or a tax expert, which would be too costly for freelancers just starting out. 

For on-demand manufacturing, there are two taxation considerations. The first is direct tax, which involves determining where the main value is. Where is the value to be taxed as supply networks become more decentralized, data is collected from multiple sources, and data mining software is developed? The other consideration is indirect tax, which deals with supplier management. When a company has many suppliers in diverse locations with various tax laws, it can be challenging to know how to classify them for taxes. Also, companies must make quick decisions about the best tax treatment because on-demand products are manufactured quickly.

Implications of on-demand taxation

Wider implications of on-demand taxation may include: 

• Intergovernmental organizations and regional bodies developing taxation standards for the on-demand economy, including penalties and fees.
• More taxation technology geared to guide and automate the tax filing process for gig workers. This development can lessen tax evasion.
• Governments digitizing their taxation systems through robotic process automation (RPA) to automate repetitive tasks and streamline the collection process.
• Increased employment opportunities for accountants and tax consultants as more businesses and individuals switch to the on-demand model.
• The potential for double taxation or improper categorization of taxes for on-demand manufacturing due to their decentralized processes, leading to revenue losses.
• A surge in mobile and web-based applications for tax management, simplifying compliance for both service providers and users.
• A reevaluation of tax brackets and categories, potentially leading to the creation of new tax segments tailored to gig economy earnings.
• Enhanced focus on international tax agreements to address cross-border on-demand services, influencing global trade and economic policies.

Megfontolandó kérdések

• If you work for the on-demand economy, what technologies do you use to file taxes?
• What are the other potential challenges of collecting taxes from the on-demand sector?