Taxation of e-Commerce - A Task For Jugglers
Taxation of e-Commerce - A Task For Jugglers

Summary/Abstract: E-commerce presents a radical transformation of the nature of commercial activities; this creates significant challenges to regulations and tax formulas that are not specifically directed towards the “virtual” commercial world. A particular area of concern is the challenges posed by the growth of internet to current commercial and tax activities. This paper is going to identify the main challenges of assessing the taxing of e-commerce activities. It discusses the new challenge which faces governments as well as agencies such as the OECD and WTO regarding traditional tax concepts and their adjustment for an e-business environment. Contemporary tax legislation should be evaluated for applicability to the e-commerce platform. The paper will show the problems which may appear as consequence in the case of nonapplicability; double-taxation, electronic fraud, jurisdictional issues, all complicating online commercial transactions. Ultimately these may prevent the internet growing to its full potential as a new virtual commercial world, even replacing the traditional way of conducting business. Slowly but surely, however, especially after Ottawa, where the OECD initially examined the issue of e-commerce and taxation, taxing online commercial activity is becoming an inescapable e-business reality. As a result the objective should be the realization of a formula of worldwide harmonized ecommercial regulations to achieve economic, legal and social efficiency. Thus, this presentation will draw upon some conclusions on the difficulties as well as preliminary thoughts on solutions.

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