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Consumption Taxation in a Digital World : A Primer

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  • Ligthart, J.E.

    (Tilburg University, School of Economics and Management)

Abstract

The paper reviews the economic and administrative issues that arise in the taxation of electronic commerce; addresses how best to meet the criteria of an ideal tax system; and examines recent policy developments.It is argued that destination-based taxation-is presently the norm for goods taxation is technically more complex for digital products and intangible services sold over the Internet, reflecting the difficulty of determining the location of the buyer and seller.Most of the potential solutions to this problem require a great deal of administrative cooperation between national tax authorities.Case studies of several countries show that policy responses to electronic commerce have di.ered, with the European Union taking the lead on implementing a system of destination-based registration.
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Suggested Citation

  • Ligthart, J.E., 2004. "Consumption Taxation in a Digital World : A Primer," Other publications TiSEM 46537bf7-4822-4dbe-b3fa-f, Tilburg University, School of Economics and Management.
  • Handle: RePEc:tiu:tiutis:46537bf7-4822-4dbe-b3fa-f64306f6fe45
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    References listed on IDEAS

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    Cited by:

    1. Wolfram F. Richter, 2018. "Taxing Direct Sales of Digital Services: A Plea for Regulated and Internationally Coordinated Profit Splitting," CESifo Working Paper Series 7017, CESifo.
    2. Wolfram F. Richter, 2019. "The Economics of the Digital Services Tax," CESifo Working Paper Series 7863, CESifo.

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    More about this item

    JEL classification:

    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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