Taxation of e-Commerce - A Task For Jugglers

E-commerce presents a radical transformation of the nature of commercialactivities; this creates significant challenges to regulations and tax formulas that arenot specifically directed towards the “virtual” commercial world. A particular areaof concern is the challenges posed by the growth of internet to current commercialand tax activities. This paper is going to identify the main challenges of assessing thetaxing of e-commerce activities. It discusses the new challenge which facesgovernments as well as agencies such as the OECD and WTO regarding traditionaltax concepts and their adjustment for an e-business environment. Contemporary taxlegislation should be evaluated for applicability to the e-commerce platform. Thepaper will show the problems which may appear as consequence in the case of non-applicability; double-taxation, electronic fraud, jurisdictional issues, all complicatingonline commercial transactions. Ultimately these may prevent the internet growingto its full potential as a new virtual commercial world, even replacing the traditionalway of conducting business. Slowly but surely, however, especially after Ottawa,where the OECD initially examined the issue of e-commerce and taxation, taxingonline commercial activity is becoming an inescapable e-business reality. As a resultthe objective should be the realization of a formula of worldwide harmonized e-commercial regulations to achieve economic, legal and social efficiency. Thus, thispresentation will draw upon some conclusions on the difficulties as well aspreliminary thoughts on solutions