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College week 6 - 2

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Uitwerking van het tweede college van week 6

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  • March 21, 2021
  • 11
  • 2020/2021
  • Class notes
  • B.b. de mik
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College 2 week 6 – Digitalization of the Economy

The value creation dilemma
Porter supply chain – Good dominant logic




All the profit derives of the company doing things better than the competitor.

Vargo and Lusch – Service Dominant Logic




It’s not so important that you need to realize the best product in your industry to achieve
the best margin, but the highest margin is achieved with good relations with the
stakeholders.
Example: Tesla is quite successful because in a lot of parking spaces have a charger in the NL,
so they are selling a lot here. In Italy you have a big problem, because there are some
charging stations, but the government is not helping that much, so less cars are sold there.
This means that the NL government and customers are actively creating value for Tesla. So,
when applying this logic to Facebook, it’s understandable that the government wants a piece
of the pie to tax.

, Tax challenges arising from digitalization
Reseller
Business model overview: a reseller creates value by selling goods (tangible or intangible) to
final customers through an online store. The general value proposition is to resell goods
purchased from input suppliers to final customers at a mark-up.




Art. 5: digital PE
Countries want more than a digital PE

BEPS 2.0 is not just about digital




The current debate is not about taxing digitalized companies, but reallocating taxing rights to
the market jurisdictions
All consumer facing companies will be covered!
They want a share of the residual profits

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