VARIOUS COURT RULINGS ON INTERNET COMMERCE TAXATION

摘要

According to the US Census Bureau, Internet Commerce has been growing enormously in the last 10 years in terms of its volume and relative weight in total retail sales, as shown in Exhibit 1. This Exhibit indicates that the Internet commerce has reached a level of $165 billion in 2010 and maintains at a steady growth rate of 19.3 percent per year. It accounts for 4-2 percent of the total retail sales as it stands now and is still growing rapidly. In fact, it was the driving force behind the economic boom in the past decade and also the impetus of the recovery after the recent economic slowdown. However, there is a growing problem that is associated with it. Internet commerce gives rise to sales tax, which falls into the jurisdiction of the state and local governments. Who is responsible for collecting the sales tax: the seller or the buyer? It depends on whether the parties reside in the same state or not. If yes, it is the seller's responsibility. If not, it is the buyer's duty.