China’s Direct E-commerce Taxation Legal Issues Research

The rapid development of e-commerce is an irreversible trend, which has causedan immeasurable impact on the whole economy and society. E-commerce is a newbusiness model which is totally different from the traditional one, while bringconvenience to our lives, it also make troubles and influence to our current tax systemwhich based on the tangible object. Relatively speaking, compared to the indirecte-commerce，the direct e-commerce brings greater impact on the existing tax system,for its whole process is done through the Internet, and the information flow, capital flowand goods all transmitted through the Internet. In the e-commerce environment, thetaxpayer and the fixed business institution is no longer so clear, also the legal nature ofthe object is not very sure, followed by the taxing power as well as the taxation model isalso difficult to determine.Studies on direct e-commerce is very rare currently,but with the advent of thedigital age, E-commerce will create an enormous market value, if we do not startworking on e-commerce and its tax collection system at once, we will not be able toprotect national economic interests on the international market in the coming time. So,It is necessary to sort out and summarize the relevant issues of e-commerce, and at thesame time, learn from the experience of other countries, to clarify the related issues,hoping to be able to put forward my own views and suggestions for the improvement ofour tax law system.The main structure of this paper: In the first part, a brief introduction to the basicconcepts of e-commerce and direct e-commerce, and at the same time, analyze itsdevelopment status, features, so as to lay the foundation for the subsequent analysis.In the second part, we will start the discussion on whether taxes on e-commerce ornot, if taxes on e-commerce, is it wise to impose new taxes on e-commerce?The third part: Brief introduction to the relevant foreign e-commerce taxationsystem, hoping to provide reference for the improvement of our tax system.The fourth part: Mainly introduce the influence of e-commerce on the existing taxsystem, especially on the turnover tax and income tax, which can highlight the problemsin this tax system and provide a basic framework for subsequent analysis.The fifth part: we will analyze the legal nature of direct e-commerce products, andwe believe it should be the "services" in the business tax, but should gradually transition to VAT under the "services"; then we determine which principle of taxjurisdiction should be adopted. At last, we analyze the specific mode of imposition tocorrespond different trading patterns. The income tax system can refer to the businesstax analysis.The last part: Put forward some supporting measures for the existing tax system, toensure the effective operation of the tax system.