Value-added tax, the most common form of consumption tax in the world, operates on a destination principle to ensure it is levied only in the place of final consumption in cases of cross-border transactions. The international trade in services and intangibles through digital means poses two challenges: finding the place of consumption and collecting the tax when services supplied by businesses in one jurisdiction are instantaneously consumed by customers in another. This article examines these challenges and considers how unilateral action and soft international responses have so far failed to achieve consistent destination basis taxation. An alternative option would be to adopt a hard multilateral response that would overcome the limitations of unilateralism and soft-law approaches and achieve consistent destination basis taxation in the digitalised economy.

In the wake of the Faroe Islands fishing dispute, this article seeks to clarify the status of overseas territories in the World Trade Organization (WTO). The article considers the rule of public international law regarding the territorial application of treaties, the impact of territorial limitations in WTO goods and services schedules and the treaty actions of individual States responsible for the international relations of overseas territories. The article then explores the implications of WTO rights and obligations in respect of Members' overseas territories, including limitations on free riding and preferential treatment.