The GATS provides a provision for a departure from the principle of national treatment to ensure that direct taxes may be effectively collected on services.

Question

Quizplus · Accepted Answer

Article XIV of the GATS permits Members to deviate from the principle of national treatment regarding taxation measures affecting trade in services. This allows countries to take measures necessary for the effective collection of direct taxes on services, even if this results in differential treatment of foreign service providers compared to domestic providers.

The GATS Provides a Provision for a Departure from the Principle