The rapid growth of electronic commerce will influence the existing VAT system, and it will be necessary to introduce new VAT system when electronic commerce becomes a general commerce type in the market.
The objective of this thesis is to evaluate the existing VAT taxation model suggested earlier and propose unified VAT taxation system in order to impose VAT upon business to consumer e-commerce transactions effectively.
In the case of consumer models, it turned out to be difficult to apply to e-commerce because of deficiencies of consistency and possibilities of tax evasion. Also, supplier models turned out to be difficult to adopt in the e-commerce market because of difficulties of imposing tax burden on foreign suppliers.
In this thesis, a reverse charge system using digital certificates and payment service providers is proposed. The proposed VAT system can support unified taxation without concerning about various payment methods and the geographical location of consumers and suppliers. And it can be implemented in the current e-commerce circumstances through partial modification of exiting electronic payment systems like SET. And the proposed system can also use newly developed payment protocols such as OFX, OTP, BIPS and etc.. These protocols are needed for transactions between domestic payment service providers and foreign payment service providers.
The proposed system can minimize the construction costs and operating costs of VAT taxation system because it can make use of a number of information in the typical process of e-commerce transactions. For the actual implementation of the proposed VAT model, it is indispensable to build an international consensus about standard information exchange.
