CHAPTER 7 Going Online: The Net, Information Services, and More
Electronic Commerce and Taxes The budgets of most of the world's countries, their states, and their cities depend on sales taxes. The rapid expansion of e-commerce is depleting this storefront tax base since most e-commerce transactions are not taxed. The Organisation for Economic Co-operation and Development (OECD), a consortium of the major industrialized nations has arrived at a consensus on how to derive taxes from e-commerce activities. Much work is yet to be done, but the fact that 30 countries have agreed in principle means that e-commerce transactions may soon be taxed.