On the Possibility and Desirability of Taxing E-Commerce
Univ. of Aarhus Economics Working Paper No. 2004-08
35 Pages Posted: 31 Jul 2008
Date Written: September 21, 2004
Over the past decade the taxation of e-commerce has been widely discussed among politicians, tax law experts and economists. To put some perspective on this issue it is analyzed to what extent e-commerce can actually be taxed and the severity of the ensuing tax revenue losses following from future growth of e-commerce is discussed. Since the US and the EU cases differ substantially they are considered separately. Subsequently various arguments supporting the view that e-commerce should receive preferential tax treatment are considered. Although no firm recommendations can be provided some interesting topics for future research are suggested.
Keywords: E-commerce, commodity taxation, tax principles, revenue loss, preferential tax treatment, auditing
JEL Classification: H25, L12, F13
Suggested Citation: Suggested Citation