Abstract

This paper examines how sales taxation on Internet purchases could affect the decision to buy goods over the Internet. The results appear robust with respect to unobserved technological sophistication or other alternative explanations. The tax effect is found to be significant and its magnitude suggests that applying a provincial average sales tax of 14% to all Internet sales in Canada would reduce the number of online buyers by as much as 44%.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.