In 1996, several US states and municipalities began to view Internet services as a potential source of tax revenues.
The 1998 Internet Tax Freedom Act stopped the expansion of direct tax collection from the Internet, glorifying taxes in ten states. In the United States alone, about 30,000 tax jurisdictions can instead claim taxes on the Internet. However, the law does not affect the sales tax applied to online purchases. It continues to be taxed at various rates depending on jurisdiction, in the same way that telephone and postal orders are taxed.
Video Internet taxes
Bentuk perpajakan Internet
Pajak akses internet
Internet access tax usually takes the form of taxes on Internet service provider (ISP) fees. The ISP charges this fee to the user. Currently, this fee is typically charged at the state level. There is no national tax on ISP user fees. There is no uniform description of internet access taxes; they fall under the category of sales taxes in some states, and telecommunications taxes in other countries; and they are considered service fees, which are usually exempt from taxes, in other states. Ten states (which are censured under the Internet Tax Freedom Act as part of a political compromise) are allowed to provide some type of taxation on ISP fees. Ten states are Hawaii, New Hampshire, New Mexico, North Dakota, Ohio, South Dakota, Tennessee, Texas, Washington & Wisconsin. Under the grandfather clause that is included in the Internet Tax Freedom Act, Texas currently collects taxes on Internet access charges of more than $ 25.00 per month. Texas collects taxes on internet access prior to the enactment of the ITFA under the terms of "Taxable Services" of its Tax Code, see longer Ã,§ 151.0101 (a). Texas has refined the tax code to define "Internet access service", including under "Taxable Services" and waive the first $ 25.00 each month, See current Texas Tax Code Ã,§ 151.325 & amp; 151,0101 (a)
E-mail tax
E-mail tax is a certain type of bit tax, which will be taxed based on the volume of emails sent or received, which is calculated either by the number of messages or the size of data from the message. This tax type is mentioned in a 1999 report by the United Nations Development Program entitled "Globalization with Human Face", as a small tax type that will raise about $ 70 billion (US) if implemented globally. Tax e-mail has been the subject of many internet and political deceptions. Email tax imposed by the US government or its political subdivisions is prohibited by the Internet Tax Freedom Act.
Maps Internet taxes
Conceptual issues
Beyond the question of direct taxation of Internet access through levies such as taxes, bandwidth taxes, email taxes, and franchise fees, the related issues involve imposing sales tax on the sale of goods and Internet services. This taxation is not prohibited by federal law, but rather by a series of Supreme Court decisions including Quill Corp v. North Dakota (1992). These cases state that state taxes on state sales by vendors without a significant physical presence in the state violate the US Constitution Trade Article. Because of this constitutional ban in collecting sales taxes from so-called "long distance" sales on the Internet, the problem of local jurisdiction of goods and services taxes purchased from outside the country by their residents using the Internet has not raised the conceptual questions discussed below. View tax-free shopping.
Location
Location problems - Internet users, user partners in commercial transactions, headquarters facilities of any commercial entity involved, and even servers and switches - are important for tax purposes. For example, nine US states that currently access taxes in some way, four refer to location. In each case, both service provision and billing must be done within the country. Connecticut puts a burden to determine whether this happens to an Internet service provider. But in general, there is no simple way to determine the location, because most of the Internet has no restrictions. Users can and regularly access their accounts from remote locations; service providers are almost always in multiple tax jurisdictions; and data traffic itself, through packet-switched Internet architecture, is directed through many locations. These issues are important not only for practical reasons in determining tax incidents and enforcement, but also because the US Constitution requires that state sub-jurisdictions or taxes have "nexus" with transactions to exert its tax power, and the determination lies precisely in such considerations that.
Settings v. monthly fee
In the United States, some states and tax authorities distinguish between initial setup fees for Internet access and monthly, hourly, or minute billing costs for actual access. Nebraska imposes an initial setting tax, but only if software is provided. It does not burden the next monthly billing. Tennessee, on the other hand, levied a second tax.
Good vs. service
The basic problem in determining whether Internet access and Internet use of any type is subject to sales tax, usage tax, telecommunications tax, this combination of taxes, or no taxes at all, is whether Internet access and use are determined to be "service" or "good. "If access to the Internet or use is considered a service, there is generally no applicable sale or use of taxation, while applicable tariffs and variant of telecommunications tax may differ. However, if access requires downloading user software, some U.S. states (eg, Massachusetts) may consider it a "taxable sale" of goods to their residents.
Collection
The Internet tax collection presents a variety of complex issues. This includes whether the countries themselves should collect taxes; whether the load should be placed on an Internet service provider; the extent to which retailers or value-added intermediaries can be requested to perform collection tasks; and in all cases, the manner in which this collection can be enforced accurately and meaningfully by the taxation jurisdiction. The root of this problem comes from two debates. The first is the constitutionality that requires internet businesses to collect taxes related to the "Due Process" and "Commerce" clauses of the constitution that require fair action by the government and no excessive burden placed on interstate commerce. The second is whether the economic benefits derived from taxation exceed the economic cost of enforcing taxation.
Current law and future prospects
The 1998 Internet Tax Freedom Act was written by Representatives of Christopher Cox, R-CA and Senator Ron Wyden, D-OR and signed into law on 21 October 1998 by President Bill Clinton in an effort to promote and preserve the commercial potential of the Internet.. The law prohibits federal, state, and local government from burdening Internet access and from imposing discriminatory Internet taxes such as bit taxes, bandwidth taxes, and e-mail taxes. The law also prohibits some taxes for electronic commerce.
The 1998 bill has been extended three times by the United States Congress since its original entry and was last updated on 30 October 2007 for 7 years. On February 11, 2016, the US Congress passed the Internet's Permanent Tax Freedom Act and sent a bill to President Barack Obama for his expected signature.
Internet taxes outside the United States
In 2014, the Bhutan Government imposes a 5% sales tax on all internet services.
The Pakistani government has imposed 14% tax on internet throughout Pakistan. With this new face tax that can be reclaimed at the time of filing a 14% return of the amount of bills that should be deducted from internet usage across Pakistan. Most people use social networking websites to voice their complaints. With this tax, Pakistan is the most tax-abundant region in the world.
On May 30, 2018, Uganda's parliament passed the draft Customs Amendment Bill which proposed it;
The person providing the services being taxed becomes liable to pay the excise duty on the service at a date earlier than the date on which the performance of the service is completed; the date on which payment for the service is made; or the date when an invoice was issued.
o Telecommunication service operators providing data used to access top services are responsible for accounting for and paying customs fees for access to the above services. "Above the top service" is defined as the transmission or reception of voice or messaging over an internet protocol network and includes access to a virtual private network but does not include educational or research sites determined by the Minister with notice in the State Gazette.
Proposition outside the United States
French President Nicolas Sarkozy announced on January 8, 2008, that he would propose Internet piracy as a way to finance state-owned television. The proposal came as part of a broader plan for the French audiovisual network; the plan also includes provisions such as "total ad emphasis on public channels" whose funding will then be aided by "very small sales taxes on new communication methods, such as Internet access and cell phones."
In 2014 the Hungarian government proposed internet tax and was opposed by the mass movement against it.
See also
- Internet Tax Nopiscrimination Law
- Sales tax in the United States
- Taxation in the United States
- Taxing Digital Goods
References
External links
- US. Congress Permanent Internet Tax Freedom bill site The Bill on Internet Permanent Tax Act Act on U.S. Congress website
- Collect Sales Tax over the Internet Describes the current rules for collecting sales tax on Internet sales.
- Taxing the Internet: Analyzing State Plans to Get Online Sales Articles Legal that addresses the country's efforts to earn an online sales revenue.
- An efficient Project Tax Project Sales Project to design, test, and implement a sales and use tax system that radically simplifies sales and use taxes.
- Electronic Commerce: Taxation and Planning This is a treatise written by David Hardesty, and published by Warren Gorham & amp; Lamont, which covers all aspects of electronic commerce taxation.
- Congressional Intervention in State Taxation: Normative Analysis of Three Proposals The authors analyze proposals in Congress concerning an Internet access tax moratorium, streamlining sales taxes, and business activity taxes. They also provide an overview of the congressional intervention in the state tax affairs.
- Hvad er medielicens? (Archived from the original on 2009-03-28) This is a reference to a Danish state-run broadcasting network that details the scope of 'medielicens'.
Source of the article : Wikipedia
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