1 Federal Inland Revenue Service, Lagos, Nigeria.
2 Department of Economics, Adekunle Ajasin University, Akungba-Akoko, Nigeria.
3 Department of Mechanical Engineering, Motilal Nehru National Institute of Technology Allahabad, India.
4 Senior Financial Auditor, Bragha Company Limited, Accra Ghana.
5 Department of Agricultural and Applied Economics, Texas Tech University, Texas, USA.
6 Department of Applied Statistics and Decision Sciences, Western Illinois University, Macomb, Illinois, USA.
Review Article
World Journal of Advanced Research and Reviews, 2024, 24(02), 1445-1453
Received on 28 September 2024; revised on 11 November 2024; accepted on 13 November 2024
The rapid expansion of e-commerce and digital services has fundamentally transformed the global economic landscape, presenting unprecedented challenges for traditional taxation frameworks. This comprehensive review examines the complexities of implementing effective taxation mechanisms in the digital economy, with particular emphasis on cross-border transactions and digital service providers. The research analyzes current international taxation policies, regulatory frameworks, and emerging solutions adopted by various jurisdictions to address the challenges of digital commerce taxation. Through systematic evaluation of existing literature and case studies, this review identifies key obstacles including permanent establishment definitions, value creation assessment, and jurisdiction determination in digital transactions. The findings reveal significant gaps in current taxation systems and highlight the need for international cooperation in developing standardized approaches to digital economy taxation. The study demonstrates that while some countries have implemented interim measures such as digital service taxes, a more cohesive global framework is essential for sustainable tax revenue collection in the digital age. This review contributes to the growing body of knowledge on digital economy taxation and provides valuable insights for policymakers, tax administrators, and researchers working to develop effective solutions for the evolving challenges of e-commerce taxation.
Digital Taxation; E-Commerce; Cross-Border Transactions; Tax Policy; Digital Economy; International Taxation
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Kehinde Olagoke Ariyibi, Oluwashola Fausath Bello, Tolulope Foyekemi Ekundayo, Rajat Gupta, Elebimoyo Oluwatobi Samuel, Ogunmoyero Oluwabusolami and Olanrenwaju Olukoya Odumuwagun. Addressing the challenges of taxation E-commerce and digital services in the globalized economy. World Journal of Advanced Research and Reviews, 2024, 24(2), 1445-1453. Article DOI: https://doi.org/10.30574/wjarr.2024.24.2.3460