Indirect Taxation of E-Commerce and Digital Trade: Implications for Developing Countries

This report provides an overview of the significant implications and challenges of e-commerce for taxation authorities, based on the policies put in place by several countries. Understanding different approaches to e-commerce and taxation is important to facilitate international trade and online commerce. The report identifies key concerns that need to be addressed in term of policies and implementation mechanisms. Based on the various experiences at the global, regional and national level, it considers possible future policy options, taking the concerns of all stakeholders into account. The role of tax administrations has to evolve to keep abreast of the pace of change of new technologies and the economic landscape. Tax administrations are exploring innovative solutions to strengthen domestic resource mobilization and stabilize finances greatly needed for investments in development. This report presents an overview of the different strategies, solutions, technical instruments and approaches being used in various countries in the area of indirect taxation of domestic and cross-border e-commerce. It surveys and analyzes pertinent legal and policy issues that policymakers NEED TO consider in this context.