Taxing and E-Commerce

With the advent of taxes and e-commerce Internet e-commerce has exploded and the estimated online sales in 2003 was $ 95.7 billion (epaynews). It is estimated that 30% of online users will purchase online (epaynews). As e-commerce and e-commerce revenues increase, taxation problems and problems also increase. Due to the global nature of the World Wide Web and more than 30,000 tax jurisdictions (Internet tax) in the United States, it is easy to see the complexity of e-commerce taxation.

Taxing on e-commerce is a global problem. Local governments, countries, and international governments can increase revenue by taxing online sales. However, despite having more than 513 million Internet users, online sales are only 1% to 2% of worldwide retail sales (Labarge par. 4). A viable solution to this problem is to allow Congress permanently ban Internet taxes, but the state government to impose excise duties on items purchased on the Internet for over $ 100. In doing so, the provincial government can fund regions and federal governments that normally have no budget. For example, you can spend more money on public education and additional funds for community programs not considered by the government.

As e-commerce increases cross-border commerce transactions, the tax problem has become one of the most controversial topics. As tax authorities in many countries open up the possibility of tax evasion and evasion of new technologies for e-commerce, e-commerce not only can create new revenue sources but also brings a serious challenge to the national tax system I believe. In order to properly tax a commerce transaction, it is important that the tax authorities establish a system that can obtain accurate and necessary information on transactions, such as transaction parties, time, place and quantity. However, unlike traditional business, certain unique aspects of e-commerce have a great influence on how to operate the national tax system. In the past few years there were three major tax issues controversial in international discussion. They are:

Jaako lives in Helsinki, Finland, and Venla lives in Tallinn, Estonia. They set up an e-commerce store together and wanted to sell products to customers all over the world. Both the company and Venla are tax resident of Estonia, Jaako is a tax resident of Finland and pays Finnish taxes for his personal income as a foreign employee of Estonian company. Jaako visits a tax payment consultant and consults the Finance Tax Division to find out whether the company also has tax liability and then ensures that the Finance and Estonian tax treaties do not have double taxation risks.