The Impact of Sales Taxation on Internet Commerce — An Empirical Analysis

Economics Letters 99 (2008) 557-560

Posted: 31 Mar 2013

See all articles by Shamim Ahmed

Shamim Ahmed

Independent

Tony S. Wirjanto

University of Waterloo - School of Accounting and Finance; University of Waterloo, Department of Statistics & Actuarial Science

Date Written: 2008

Abstract

This paper examines how sales taxation on Internet purchases could affect the decision to buy oods over the Internet. The results appear robust with respect to unobserved technological sophistication or other alternative explanations. The tax effect is found to be significant and its magnitude suggests that applying a provincial average sales tax of 14% to all Internet sales in Canada would reduce the number of online buyers by as much as 44%.

Keywords: Tax incidence, Business taxation

JEL Classification: H22, H25

Suggested Citation

Ahmed, Shamim and Wirjanto, Tony S., The Impact of Sales Taxation on Internet Commerce — An Empirical Analysis (2008). Economics Letters 99 (2008) 557-560, Available at SSRN: https://ssrn.com/abstract=2241875

Shamim Ahmed

Independent ( email )

Tony S. Wirjanto (Contact Author)

University of Waterloo - School of Accounting and Finance ( email )

200 University Avenue West
Waterloo, Ontario N2L 3G1
Canada
519-888-4567 x35210 (Phone)

HOME PAGE: http://https://uwaterloo.ca/statistics-and-actuarial-science/people-profiles/tony-wirjanto

University of Waterloo, Department of Statistics & Actuarial Science ( email )

200 University Avenue West
Waterloo, Ontario N2L 3G1
Canada
519-888-4567 x35210 (Phone)
519-746-1875 (Fax)

HOME PAGE: http://math.uwaterloo.ca/statistics-and-actuarial-science/people-profiles/tony-wirjanto

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