Internet Tax Policy: An International Perspective

The sale of goods and services over the Internet is approaching $50 billion (U.S.) annually in the U.S. and many times that amount internationally (Business Wire 1). This relatively new form of commerce has led to concern and interest on the part of governments, businesses, and individuals about the collectivity of taxes on Internet transactions, downloads, and access. This chapter examines internet tax policies of the U.S., Canada, Australia, the U.K., and the European Union nations. It is intended to serve as a state-of-the-art paper on international Internet tax policy and to offer recommendations for model Internet tax policy.