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E-commerce concept
E-commerce Taxes – E-commerce is the process of buying and selling a good or service over the Internet, transferring money and data to complete the sale, and it may be known as online commerce, and this commerce may be from a company to a company, from a company to a consumer, from a consumer to another consumer, or from a consumer to a business, and e-commerce can be conducted via computers, tablets or smartphones, through online order list shopping, and it is now possible to sell or buy a product or service through online e-commerce transactions, including Books, music, plane tickets, and financial services such as investing in stocks and banking services, and e-commerce is a financially inexpensive process in terms of the lack of a need for a physical place to display goods or save in terms of financial transactions, and it is also possible to sell goods that cannot be sold in physical stores, which It led to the expansion of its presence in the market, which helped to increase the volume of sales.
Taxation of e-commerce
The imposition of taxes on online purchases is still controversial, as it depends on the countries if they are looking for a new source of revenue or suffer from financial hardship or not, and some see that imposing the tax on e-commerce is unfair as it is a new sector that needs expansion and development Others may see that it is also unfair to impose taxes only on retail merchants and give Internet merchants an additional advantage over them, and that the tax on this type of sale is according to the laws and legislation imposed by the state, for example, in the United States of America no taxes were initially imposed on e-commerce to ensure the efficiency of this market and its ability to grow and develop without imposing taxes.
How do taxes affect e-commerce?
E-commerce Taxes – The impact of the tax on e-commerce depends on the state itself and its policy in how to impose taxes on e-commerce. Among the taxes imposed on e-commerce are income tax, customs tax, and sales tax, and there are several ways to impose these taxes.
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The negative impact of E-commerce Taxes
The negative impact of the tax on e-commerce is as follows:
- Taxes may limit internet use itself because consumers are unwilling to pay taxes on their purchases.
- Taxes may affect consumer data privacy as information will be required to estimate and collect tax.
The positive impact of E-commerce Taxes
The positive impact of the tax on e-commerce is as follows:
- Increasing revenues for the state to solve its problems such as unemployment and others, or using them to finance its services.
- Achieving a balance in consumer behavior between traditional and electronic commerce.
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