A Study On Legal Issues Of Taxation Of Digital Products Online Cross-border Transactions

The swift development of digital products online cross-border transactions has seriously challenged the traditional foreign-related turnover tax law. In our country, it has caused different understandings on elements of the tax laws, including taxation objects, taxation connection points and taxpayers; in the external level, there has been a conflict of tax jurisdiction over the relevant countries, also it involves the international double taxation, tax evasion and tax avoidance. Therefore, how to deal with the legal issues of taxation of digital products online cross-border transactions is particularly important.Legal issues of taxation of digital products online cross-border transactions are concentrated in the article from the theoretical and practical aspects,using a variety of methods,such as theoretical, comparative and empirical analysis and comprehensive,normative and critical study, which emphasizes on the essence and taxation of digital products online cross-border transactions and the main legislations and practices of countries and international organizations. It aims to provide reference suggestions for our country to solve the legal issues of taxation of digital products online cross-border transactions.Firstly, this article points out digital products online cross-border transactions has challenged the traditional tax law systems. Secondly, it is concerned about the taxation of digital products online cross-border transactions by means of the economic nature of the tax, neutral principle of taxation and fair principle of taxation, especially it concludes that digital products online cross-border transactions should be levied the current tax rather than a new tax.Thirdly, the place of consumption principle is comparatively suitable to the jurisdiction of taxation combined with analysis of experts viewpoints and OECD and the European Union legislations. Finally, this article advocates China should hold the taxing position of the digital products online cross-border transactions and build effective tax collection mechanism based on place of consumption principle. It also aims to pay attention to strengthen international cooperation.