Digitalization And Tax Law 2023

S. 209Impact of B2C distance sales of goods on VAT collection in EU: Effectiveness, shortcomings and technology opportunities

Aksels Zingulis

S. 2121. Introduction

Digitalization on the worldwide scale has profoundly created business models previously unknown. The shift from the physical retail store to highly digitalized ways of conducting the business through electronic means, has allowed companies to scale in a border-less way and reach consumers that previously would be reached through “bricks and mortars” business model. Technological, infrastructural and policy wide developments throughout the world, has created a so called “Digital economy” from which all involved stakeholders can benefit. Business has access to worldwide data-targeted economy, consumers benefit from the wide-range of products available one click away, on the same hand the rapid growth and capitalization of businesses for countries means an additional tax revenue and the area that bring opportunities if acted accordingly.

However, together with prosperity the digitalization has brought it becomes even more topical whether current approach of managing and guiding highly digitalized businesses through the legislative framewor...