Taxation Issues For E-commerce businessesw

Does any one if good web links regarding taxation issues for e-commerce businesses. Taxation is regulated at country or state level but is there an international body which is actually standardizing taxation regulation at the international level. What the name of this organization ? any Web Link ? Does some of you have got customers in the service industry (ie:dot-coms) which sell services (they don’t ship goods) to customers who potentially can be located anywhere geographically ? If you do, I’m interested to know if you have got your tax sales invoice set to 0 or do they charge tax to their customer … tarek_demiati@ureach.com

As you know, I’m from Switzerland and this country is considered as a tax-heaven. In fact I came accross of many “virtual companies” originated especially from US and UK individuals and even did Navision applications to help them in “optimizing” their tax issues. So I guess I’m quite competent to answer your questions. 1) Generally there is nothing like an intl. organization or something like a common rule. The only rule which applies to AFAIK every civilized country reads “You only have to pay taxes in ONE country”. If you live in country A and make some money in country B you might have to pay taxes in country B. However, you will not have to pay income taxes once again in country A. But this is more or less the only reliable rule. Usually you have to declare your income and pay taxes in the country you live. You might for example open a company in Switzerland, Liechtenstein, Luxembourg, the Cayman Island or British Virgin Islands and have all customers paying directly to your account in this country. In this case your local tax office has not much chances to track down your real income. Especially if you choose a country like Switzerland or Liechtenstein where bank accounts are kept secret from tax-offices. Swiss banks are only allowed to reveal bank transactions in case of a crime. But as tax-cheating is not a crime in Switzerland, tax-offices will run against a wall in a futile attempt to get hold of the transactions to your account which makes your money very save and untraceable here. However as you are not living in Switzerland you have the need to transfer the money back to your country or transport it in cash back home. That’s where you might slide into illegality according of the laws in your country. Any further questions? ------- With best regards from Switzerland Marcus Fabian