Tax problems of digitized e-business

James G.S. Yang, Leonard Lauricella

Research output: Contribution to journalArticleResearchpeer-review

Abstract

Internet commerce involves sales tax, which is under the jurisdiction of the state and local governments. If the seller and buyer don't reside in the same state, the tax analysis can be complicated. The U.S. Supreme Court has ruled that there must be nexus between the seller and the state before the seller can be required to charge sales tax to the buyer and remit it to the buyer's state of residence. New York's Amazon tax law attempts to use Web site connection as a nexus between the seller and the state. Location of residence becomes critical. But in the digital age product can be transferred from one computer to another, and computers can be located anywhere. Residencies of the buyer and seller may be completely obscured. For international transactions the situation becomes even more complex. This article suggests that sales tax jurisdiction be changed from state and local governments to the federal government.

Original languageEnglish
Pages (from-to)222-242
Number of pages21
JournalJournal of Internet Commerce
Volume9
Issue number3-4
DOIs
StatePublished - 1 Jul 2010

Fingerprint

Taxation
Sales
Industry
Websites
Electronic business
Tax
Seller
Internet
Buyers
Sales tax
Jurisdiction
State and local government

Keywords

  • Amazon tax
  • Digitized product
  • E-business
  • Internet commerce
  • Nexus
  • Sales tax
  • Software
  • Tangible product

Cite this

Yang, James G.S. ; Lauricella, Leonard. / Tax problems of digitized e-business. In: Journal of Internet Commerce. 2010 ; Vol. 9, No. 3-4. pp. 222-242.
@article{c7dddd48af534be7849636004e299658,
title = "Tax problems of digitized e-business",
abstract = "Internet commerce involves sales tax, which is under the jurisdiction of the state and local governments. If the seller and buyer don't reside in the same state, the tax analysis can be complicated. The U.S. Supreme Court has ruled that there must be nexus between the seller and the state before the seller can be required to charge sales tax to the buyer and remit it to the buyer's state of residence. New York's Amazon tax law attempts to use Web site connection as a nexus between the seller and the state. Location of residence becomes critical. But in the digital age product can be transferred from one computer to another, and computers can be located anywhere. Residencies of the buyer and seller may be completely obscured. For international transactions the situation becomes even more complex. This article suggests that sales tax jurisdiction be changed from state and local governments to the federal government.",
keywords = "Amazon tax, Digitized product, E-business, Internet commerce, Nexus, Sales tax, Software, Tangible product",
author = "Yang, {James G.S.} and Leonard Lauricella",
year = "2010",
month = "7",
day = "1",
doi = "10.1080/15332861.2010.526490",
language = "English",
volume = "9",
pages = "222--242",
journal = "Journal of Internet Commerce",
issn = "1533-2861",
publisher = "Routledge",
number = "3-4",

}

Tax problems of digitized e-business. / Yang, James G.S.; Lauricella, Leonard.

In: Journal of Internet Commerce, Vol. 9, No. 3-4, 01.07.2010, p. 222-242.

Research output: Contribution to journalArticleResearchpeer-review

TY - JOUR

T1 - Tax problems of digitized e-business

AU - Yang, James G.S.

AU - Lauricella, Leonard

PY - 2010/7/1

Y1 - 2010/7/1

N2 - Internet commerce involves sales tax, which is under the jurisdiction of the state and local governments. If the seller and buyer don't reside in the same state, the tax analysis can be complicated. The U.S. Supreme Court has ruled that there must be nexus between the seller and the state before the seller can be required to charge sales tax to the buyer and remit it to the buyer's state of residence. New York's Amazon tax law attempts to use Web site connection as a nexus between the seller and the state. Location of residence becomes critical. But in the digital age product can be transferred from one computer to another, and computers can be located anywhere. Residencies of the buyer and seller may be completely obscured. For international transactions the situation becomes even more complex. This article suggests that sales tax jurisdiction be changed from state and local governments to the federal government.

AB - Internet commerce involves sales tax, which is under the jurisdiction of the state and local governments. If the seller and buyer don't reside in the same state, the tax analysis can be complicated. The U.S. Supreme Court has ruled that there must be nexus between the seller and the state before the seller can be required to charge sales tax to the buyer and remit it to the buyer's state of residence. New York's Amazon tax law attempts to use Web site connection as a nexus between the seller and the state. Location of residence becomes critical. But in the digital age product can be transferred from one computer to another, and computers can be located anywhere. Residencies of the buyer and seller may be completely obscured. For international transactions the situation becomes even more complex. This article suggests that sales tax jurisdiction be changed from state and local governments to the federal government.

KW - Amazon tax

KW - Digitized product

KW - E-business

KW - Internet commerce

KW - Nexus

KW - Sales tax

KW - Software

KW - Tangible product

UR - http://www.scopus.com/inward/record.url?scp=78649608002&partnerID=8YFLogxK

U2 - 10.1080/15332861.2010.526490

DO - 10.1080/15332861.2010.526490

M3 - Article

VL - 9

SP - 222

EP - 242

JO - Journal of Internet Commerce

JF - Journal of Internet Commerce

SN - 1533-2861

IS - 3-4

ER -