Evading the use tax on cross-border sales

Trandel, Gregory A.

doi:10.1016/0047-2727(92)90071-m

Cited by 39 publications

(27 citation statements)

References 8 publications

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“…Such theoretical discussions can be found in Gordon [1983], Mintz and Tulkens [1986], Braid [1987], Kanbur and Keen [1993], Trandel [1992Trandel [ , 1994, and Gordon and Neilsen [1997].…”

Section: Introductionmentioning

confidence: 99%

In a World Without Borders: The Impact of Taxes on Internet Commerce

Goolsbee

2000

The Quarterly Journal of Economics

272

174

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The rapid rise in sales over the Internet and the fact that most Internet buyers pay no sales tax has ignited a considerable debate over taxes and the Internet. This paper uses new data on the purchase decisions of approximately 25,000 online users to examine the effect of local sales taxes on Internet commerce. The results suggest that, controlling for observable characteristics, people living in high sales taxes locations are significantly more likely to buy online. The results are quite robust and cannot be explained by unobserved technological sophistication, shopping costs, or other alternative explanations. The magnitudes in the paper suggest that applying existing sales taxes to Internet commerce might reduce the number of online buyers by up to 24 percent. * I wish to thank

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“…Such theoretical discussions can be found in Gordon [1983], Mintz and Tulkens [1986], Braid [1987], Kanbur and Keen [1993], Trandel [1992Trandel [ , 1994, and Gordon and Neilsen [1997].…”

Section: Introductionmentioning

confidence: 99%

In a World Without Borders: The Impact of Taxes on Internet Commerce

Goolsbee

2000

The Quarterly Journal of Economics

272

174

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“…In this case, origin-based commodity taxes can actually improve global welfare by lowering the mark-up that producers charge over marginal costs (Trandel, 1992). A similar case arises when monopolists located in different countries have different marginal costs in the no-tax equilibrium.…”

Section: Multiple Tax Rates and Incomplete Coveragementioning

confidence: 95%

Tax competition, tax coordination and tax harmonization: The effects of EMU

Genser

Haufler

1996

Empirica

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“…In their paper, Haufler and Schjelderup (2004) show that tax differentials (including VAT differentials) between countries may weaken the common interest of firms in maintaining a socially harmful secret cartel. Similarly, Trandel (1992) shows that when firms charge a markup over marginal costs, cross‐border shopping will provide an incentive to firms to lower their prices which, of course, benefits consumers (it is welfare improving for both regions). These results are in line with a number of studies emphasising the welfare‐enhancing effects of tax competition.…”

Section: Cross‐border Shopping Tax Competition and Tax Coordinationmentioning

confidence: 97%

Value‐added Tax in a Borderless Sa‐blns Region

Steenekamp

2007

South African J Economics

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Market integration and the abolition of border controls increase the mobility of consumers and cross-border shopping. This makes it difficult to maintain a destination-based VAT. Because of differences in the size of countries, governments of different sizes may engage in inefficient tax competition. Such externalities result in a call for tax coordination and a review of VAT regimes most suitable to a globalised world. One of the ultimate objectives of an African Union is a single market. This paper introduces the potential VAT policy implications of further economic integration within Southern Africa as a prelude to an African Economic Community, drawing on the experience of the EU in particular. When the critical factors that may impact on VAT policy are viewed together with SACU's long history of customs cooperation, a form of clearing-house regime seems appropriate. However, this may not be politically appropriate, thus clearing the way for a more conventional approach, such as the transitional EU-VAT regime. Copyright (c) 2007 The Author; Journal compilation (c) Economic Society of South Africa 2007.

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Evading the use tax on cross-border sales

Cited by 39 publications

References 8 publications

In a World Without Borders: The Impact of Taxes on Internet Commerce

In a World Without Borders: The Impact of Taxes on Internet Commerce

Tax competition, tax coordination and tax harmonization: The effects of EMU

Value‐added Tax in a Borderless Sa‐blns Region

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