The rapid expansion of electronic commerce has significantly transformed VAT/GST systems, challenging the practical application of the destination principle – a global standard promoting trade neutrality and efficiency. In this article, the author examines OECD recommendations on managing cross-border digital transactions and evaluates diverse country responses, highlighting persistent fragmentation due to varying taxable scopes and exemption thresholds. The author, ultimately, questions the continued relevance of traditional VAT/GST exemptions in digital commerce contexts, considering key international principles such as neutrality, efficiency and fairness.