Development and taxation of electronic commerce

While the traditional trading method is rapidly losing power, electronic commerce activities are growing rapidly. Electronic commerce, which has developed especially with the internet, has led to easier, faster and less costly purchases. So, consumers have naturally started to prefer electronic commerce. It is clear that hereinafter, traditional trade methods will be mentioned less with decreasing acceleration. The acceleration of electronic commerce is rising rapidly both in the national and international arena. With in line the own development, electronic commerce has begun to be included in taxation. While it was not possible to mention about taxation for pre-internet period; today, incomes are tried to tax by finding deficits created by electronic commerce. Many problems have arisen together with the development of electronic commerce. The most important of these is the decrease in tax revenues directly affecting the public sector. In this period in which commerce evolved in terms of shape, states takes measures through laws in order to minimize tax losses. Taxation method is the most spoken and discussed issue about electronic commerce. How to determine earnings from e-commerce transactions, by whom and how Income / Corparate Taxes and Value Added Tax in the delivery of goods and services via e-commerce would be paid poses serious problems. Since virtual stores do not constitute a physical space, taxation becomes difficult. Taxation methods in electronic commerce remain weak in comparison to the taxation methods in traditional trading. In particular, the difficulties in identifying the source of virtual stores and the possibility of reaching a virtual store on the other side of the world through the internet lead to this situation. Therefore, the period entered is one in which it is obligatory for the public to develop this sector instead of targeting it. Naturally, taxation and other efforts should be handled according to this objective condition. Keywords: Electronic Commerce, Virtual Store, Digital Taxes, Taxation of E-Commerce