Ways to Improve the Mechanism of Taxing Electronic Commerce
DOI:
https://doi.org/10.51699/cajitmf.v7i2.1173Keywords:
E-Commerce, Digital Economy, Tax Administration, Value Added Tax (VAT), Cross-Border Trade, Marketplaces, Platform Economy, Tax Base, BEPS Initiative, Digital Services Tax, Electronic Invoicing, Online Fiscal Control, Tax Agent Model, Artificial Intelligence-Based Monitoring,, Shadow EconomyAbstract
This article comprehensively analyzes the issues of improving the mechanisms for taxing e-commerce activities from a theoretical, institutional and practical perspective. The rapid development of the digital economy, the growth of online sales, the expansion of the activities of electronic platforms and marketplaces, as well as the increase in the share of cross-border digital services pose new fiscal and administrative challenges for the existing tax system. While traditional taxation mechanisms are based on the principle of tangible assets and territorial presence, in the context of e-commerce, the process of value creation often takes place in virtual space. This complicates the processes of determining the tax base, determining the location of profits and collecting VAT. The study examines the main problems of e-commerce taxation - determining tax jurisdiction, legally defining the intermediary role of platforms, formalizing small online sellers, controlling cross-border transactions and ensuring the transparency of digital payments - based on a systematic approach. In particular, the problem of tax base erosion and profit shifting to areas with artificially low tax rates is analyzed. The article extensively covers international experience and considers the impact of digital economy solutions within the framework of the BEPS initiative developed by the OECD, the Two-Pillar Solution concept, and global minimum tax mechanisms on e-commerce. It also analyzes the “One Stop Shop (OSS)” system introduced in the European Union experience and the practice of collecting value added tax on electronic services in the country of residence of the consumer.
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