The explosion of
e-commerce in the last 15 years has made it easier than ever to
manage the logistics of doing business in multiple countries. The
global reach it creates, though, has spawned a litany of tax
questions. You need to determine which jurisdictions have the
authority to tax you and your business activity and what taxes
apply. Your physical location and your end-customer locations can
impact what you pay to whom, but other factors might also apply.
Managing this process is critical to your continued e-commerce
operations.
Where to Tax Income
The issue of the jurisdiction to
tax e-commerce is a complicated one, which many countries have
yet to resolve. In 2016, the Israeli tax authority laid down
guidelines on taxation for companies involved in e-commerce
business in Israel. A company will owe taxes to Israel for
e-commerce income if it either has a physical presence or a
significant economic / digital presence in Israel. Thus, even if
you do not have
