In trying to comply with tax laws for your e-business, you could find yourself falling across the rabbit-hole, going from the looking glass, and attending a Mad Tea-Party.
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The rationale behind this follows: Since countries can’t collect sales tax on Internet transactions at their borders, the best way they can collect it (other typical self-assessment system) is through having an online sales tax. Further, it is claimed that people in the european countries suffer a competitive disadvantage because they must collect Vat (VAT) but others fail to.