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Abstract:
Electronic Commerce (e-Commerce) is a new marketplace that has many advantages. With the help of the internet, e-Commerce has made a major difference in the way business operates globally, offering substantial benefits to all parties: businesses, consumers, and even governments through tax. e-Taxation itself, is a complex, controversial issue, and very sensitive subject that might affect the relationship between nations. The objective of the paper is to find out whether it is possible to digitally or physically tax e-Commerce should it be desirable to do so, for delivered products. Additionally, content analysis method was utilized to identify the relevant precursors of tax compliance among e-Commerce SMEs shop owners. Furthermore, the paper will also highlight three components of tax compliance such as Tax awareness, Service Quality, and Tax fairness with their association.
Keywords: e-Commerce, E-taxation, Tax compliance, SMEs, online shop owner
Introduction
Taxation of e-Commerce is a major concern for local, international agencies and tax authorities internationally. Taxation itself is a complex and controversial issue. Hence, it should not come as an unexpected that there are so many debates regarding taxation of e-Commerce. Despite the vital role that e-Commerce has played in the revolutionizing the way business is done, it has been blamed for easing tax loss and tax evasion [1]. The situation has been aggravated by the strain like uncertainty and double taxation which make parties of e-Commerce unenthusiastic and devastate development of e-Commerce negatively [2]. e-Commerce further faces the challenges of disgraceful infrastructural deficiency, outdated legal and regulatory framework, and e-tax implementation of existing laws, coupled with widespread ignorance. All these make e-Commerce more fascinating in developing countries including Tanzania. In addition to these challenges is the level of complexity and technological complicacy involved in such transactions [3]. These enormous earnings losses, occasioned by e-Commerce expansion, have fueled the discussion on the need to come up with practical ways of curbing tax evasion and avoidance occasioned by the growth of e-Commerce. Given on to with this dilemma, governments worldwide face the formidable task of protecting their income base without stifling either the development of new technologies or the involvements of the business community in the evolving and growing e-market place [4]. It is hence the aim of this study to examine e-tax...