E-commerce tax probe

E-commerce tax probe

A commission is to be set up in the US to discuss the implications of e-commerce on the taxation system. The commission, which will be made up of representatives from the private sector, government and tax payers, will study whether online transactions and services should be taxed, and, if so, how to avoid double taxation. Currently, Internet sales are covered by rules for mail order sales, where local governments can only impose a tax if the business operates entirely in the state.

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