Value added tax on services rendered within electronic commerce

Supply of services is one of the main elements of the subject of the Value Added Tax. Within these services as services supplied within electronic commerce increased with technologic developments, number of problems have arisen in terms of scope of these supplies, theoretical substructure of taxation, determining the place of taxation and collection of tax due. In order to solve these problems, in the first part of the thesis, which consists of two main parts, relatively complicated operation of Value Added Tax system has been tried to be explained in terms of supplies of services in a general line. In this respect, the subject of taxation, taxpayer, tax liability and withholding, exceptions and stages of the taxation process are explained. In the second part of the thesis, firstly the framework of electronic services was tried to be drawn by explaining the concept, types, characteristic features and technical infrastructure of electronic commerce. Secondly, the basic principles of taxation of electronic commerce are examined. In this respect, the principle of neutrality is especially emphasized. Thirdly, explanations made on where the place of taxation should be in accordance with the theory of Value Added Tax for cross-border supplies of services including transactions within the scope of electronic commerce. Fourth and finally, a simplified registration system has been explained to enable the taxation of cross-border services rendered to final consumers. Key Words: VAT, electronic supplies, place of taxation, simplified registration system, principle of neutrality