Abstract:

 E-commerce is reporting huge sales worldwide.  According to the United States Census Bureau ("USCB"), e-commerce sales in the U.S. for the year 2006 were estimated at $108.7 billion; an increase of 23.5% from US e-commerce sales in 2005.  European Union ("EU") Western countries had 97 billion on estimated e-commerce sales for the year 2006.  This figure shows an increase on e-commerce retail sales of 37% over those reported in 2005. 

 On the issue of e-commerce taxation these figures speak by themselves.  E-commerce may represent huge domestic revenue for any government. But, how are governments implementing auditing methods for e-businesses and how are they assessing deductions and costs reported by e-businesses? 

 How is the Internal Revenue Service- IRS- allowing tax deductions for website development?  What compliance rules the IRS has implemented for e-businesses? What is the IRS concern when an e-business reports its income? What are the IRS' electronic record keeping requirements?  What are the IRS proposed rules on cost sharing arrangements?                                              

How e-businesses report their taxes in the European Union and what is the taxing authority those businesses should report to?  How does an e-Business report its income in the EU?  How the EU is auditing e-businesses?  What are the record keeping and invoice rules for e-businesses in the EU?  And what measures has the EU taken to avoid VAT fraud and VAT evasion? 

 This e-Book addresses the above questions and, additionally, it illustrates on how electronic tax filing are being conducted in United States, European Union and Canada.