Does e-commerce ease or intensify tax competition? Destination principle versus origin principle

Abstract This study examines the relationship between e-commerce development and intensity of commodity tax competition under two principles for goods purchased online: destination principle origin principle. The main findings are as follows: Given that origin-based is applied to purchases made in brick-and-mortar stores, (i) destination-based taxation on more intense than taxation; (ii) expansion online market intensifies while easing competition. factor leading results replacing choice “where purchase” goods, consumers will have a new “how when purchasing becomes available, distorts latter choice, neutral.