Foreign (Non-US) Taxes On Internet Transactions

In most discussions of Internet taxation in the United States focus is on sales and use taxation of e-commerce. While such taxes are an important component of the taxing regime on e-commerce, it would be myopic to consider only US taxes as the only tax on Internet transactions. This paper discusses the most important foreign tax on e-commerce is the Value Added Tax (VAT), since a large number of foreign countries impose the VAT.