It is trite, but true, that taxation of e-commerce is a major concern for international agencies and tax authorities worldwide. In its most advanced form e-commerce allows unidentified purchasers to pay obscure vendors, in ‘electronic cash,’ for products that are often goods, services, and licenses all rolled into one. A payee may be no more than a computer that can take up `residence’ anywhere at the drop of a hat; national boundaries are of no consequence whatsoever. The book looks at the implications of the growth of e-commerce for domestic and international tax systems. It covers a wide array of activities such as discussions on the basic principles that govern direct and indirect taxes, overview of the technological changes that have brought about e-commerce, a concise explanation of how and what happens when e-commerce is conducted, examination of the ways in which businesses are using the new technology in conducting their everyday activities, discussion of the application of existing tax principles to e-commerce, exploration of questions and problems raised by applying tax rules that evolved before e-commerce, and observations and suggestions for a variety of approaches to international tax problems resulting from e-commerce and the associated benefits and problems, since the implications of e-commerce vary from industry to industry, it focus on the broader issues. This book also analyses a number of fast-moving trends in the behaviour of national taxation authorities, web-based companies, certain low-tax (or no-tax) jurisdictions, and international organizations that have significant bearing on the future development of the taxation of e-commerce principally influence of economic organisations like OECD, WTO and EU, in particular the influential OECD ongoing study and the latest and most up to date development in OECD and European Community. It examines how US domestic and international tax rules are being interpreted and adopted in the effort to accommodate e-commerce. How VAT rules in EU countries and other jurisdictions are being restructured. It looks into the issues of revenue loss, specifically into the danger of revenue loss for developing countries. The book also offer solutions and future trends in this field.