Value Added Tax application on services performed within electronic commerce: In terms of Turkey and EU (European Union) countries an evaluation

Electronic commerce has come into our lives along with technological developments. Especially with internet becoming widespread, e-commerce has become a very important place in daily life. However, given today's laws regarding taxation of e-commerce, it appears that there are some deficiencies and problems. These are in particular, the determination of liability, the concept of the workplace, the determination of the tax-causing event and the nature of the income earned. The ıssues such as these are not simple enough for the market to solve internally on its own. For this reason, actions should be taken globally and a common path should be followed. In this study, problems of Value Added Tax application are identified and solution suggestions were tried to be made in terms of taxation of electronic commerce. In addition, it should be considered and evaluated together with the viewpoint of OECD and EU, which should be related to the theory of Value Added Tax of the taxation country in cross-border service transactions including the transactions within the scope of electronic commerce. VAT issue in electronic commerce is a subject that needs to be assessed, especially on the international scene. Pursuit of electronic goods and services in international trade has attracted the attention of many countries and economic organizations. Since different tax rates and practices in different countries, unfair competition problems are encountered in selling digital goods and services between customers, between businesses, and not operating. If almost half of the world's population is thought to be Internet users, e-commerce sales have reached very high levels and are expected to grow even further in the future. As a tax type which is used in all OECD countries except for America, VAT provides significant revenue to states through e-commerce. Service transactions are one of the key elements of Value Added Tax. Within these processes, a range of problems have arisen in the context of the increase of the service functions within the scope of electronic commerce along with technological advancements, the scope of these functions, the theoretical background of taxation, the determination of the taxation country and the collection of the tax. In the first part of the study, the general structure of electronic commerce, in the second part, basic structure of Value Added Tax and VAT application in electronic commerce is included. In the last chapter, the taxation of electronic commerce was tried to be evaluated by comparing Turkey and the European Union countries which are selected.