To tax or not to tax? That is the question? Overview of Options in Consumption Taxation of E-Commerce

Consumption taxation of e-commerce should be consistent with the basic principles of international taxation. In order to aid the policy-based discussion in relation to consumption taxation, this paper provides an outline of the fundamental policy concerns that arise in any thoughtful consideration of changes in a system of taxation. The paper explains in broad terms the objectives and principles that should guide the consumption taxation of e-commerce and it critically evaluates the different options forwarded primarily by the OECD for collection of consumption taxes.