Taxation In Electronic Commerce

Electronic commerce (e-commerce) can be defined as business activities and services conducted around the world using electronic data transmission via the Internet and the World Wide Web(WWW). The thesis begins with an explanation of e-commerce so as the reader has gained an understanding about the issues. And then, the thesis introduce the basic concept of taxation in China. In the matter of tax collection and administration, under e-commerce environment, digitization of information and internationalization of exchanges challenge our ancestral techniques of tax collection, for example, intangible ?digital products and services (software, music, video, on-line professional pieces of advice...) , customers can on line to download digital products may give rise to escape from indirect tax (VAT and customs duty, etc.). And also, jurisdictional rules for taxes are also prone to lots of thoughts on this new environment. For instance, the concept of permanent establishment has shown how much the e-commerce can challenge. Finally, some suggestions are given to tax authorities so that they can face with new challenges and apply new techniques in e-commerce environment, such as the development of e-tax system based on the e-commerce technologies.