Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/181645
Authors: 
Birg, Laura
Year of Publication: 
2018
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2018: Digitale Wirtschaft - Session: Taxation I A08-V1
Abstract: 
This paper studies the effect of an online retailer on spatial tax competition with mobile consumers. If taxation for online purchases follows the destination principle, in many cases, the entry of the online retailer mitigates tax competition. If taxation for online purchases follows the origin principle, the entry of the online retailer typically enhances tax competition. Cooperation between government reverses this effect. For sufficiently low (high) online shopping costs, welfare in the online retailer’s home country is higher under the origin (destination) principle, while welfare in the other country is higher under the destination (origin) principle. Global welfare is higher under the destination principle.
Subjects: 
tax competition
cross-border shopping
online retailer
destination principle
origin principle
JEL: 
F12
H20
L13
Document Type: 
Conference Paper
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