TAXING ELECTRONIC COMMERCE

Electronic data interchange and particularly the internet have opened up vast possibilities for electronic commerce and posed various proble ms for the taxman. Taxation issues relating to electronic commerce are not confined to customs duties alone. Equally important concerns aris e in relation to domestic taxes such as sales tax, value added tax and income tax relating to sale of products over the internet. It is no s mall challenge to experts in taxation, law and economics to design an equitable tax system for electronic commerce.