Tax Regulation of Electronic Commerce and Proposal for Adopted in Palestine

This study aims to identify the tax regulation of e-commerce and come up with proposals for adoption in Palestine, through the definition of the concept electronic commerce and its emergence, its means and its implications, as well as the reality of e-commerce in Palestine through indicators that reflect the fact of that reality, in addition to the issue of taxes on e-commerce and tax regulation of e-commerce. In order to achieve the objective of the study, the researcher used analytical descriptive methodology in the study by reviewing the literature relevant to the subject of study that helps in the development of the theoretical framework, in addition to developing the study tool represented of a questionnaire, the study tool was verified and tested by some academic professionals, which consisting of (36) paragraphs distributed to (5) fields and distributed to the study sample that have been selected randomly. The size was consists of (82) individuals working in the departments of income tax, VAT and customs, and after collecting the data, the data Have been processed by "Statistical Package for Social Sciences" (SPSS). The results of the study shows the existence of a high degree of approval at all five fields of study which consists of (training, legislation ,tax control, tax collection, infrastructure), so they reflect the high approval degree that indicate that the tax system in Palestine need special interventions on the existing system to update tax regulation of e-commerce, that which requires to put and build a Proposal for adoption In the tax departments in Palestine based on these results. The results of the study also indicates to the lack of statistically significant differences at the level of significance (α = 0.05) in terms of the tax regulation of e-commerce from the perspective of workers in the tax departments due the variables (age, academic qualification, job title, the functional), while there are differences due to the variable scientific specialization and years of experience variable. Based on the results of the study, the study recommends the following: 1. The need for developing the capacity of human resources in tax administration to keep up with technological developments and the resulting style of new business (e-commerce). 2. The tax regulators have to reconsider of the current tax laws and work on making adjustments to make them suitable for the implications on e-commerce activities. 3. The need for adoption of new developed control techniques dependent on information and communication technology in the follow-up and control of e-commerce activities such as the use of specific Programs that to be installed in the e-commerce sites and be connected to the tax departments. 4. Holding tax agreements with other countries to ensure the collection of taxes, and reducing losses especially with regard to value added tax(VAT). 5. Rehabilitation of the basic infrastructure for tax departments and adopting systems and administrative methods based information technology, to replace the traditional systems.