A Taxation Model: The Korean Value Added Tax on Electronic Commerce‪.‬

Abstract The unprecedented development of the Internet and growth of electronic commerce have added more interdependency in the global economy. At the same time, some international conflicts for taxation, especially for sales tax, are created. This paper analyzes the taxation system of the Republic of Korea whose economy depends heavily on developed countries. Also, it evaluates Korea's Value Added Tax, which is equivalent to the U.S. sales tax with a view towards coping with the global electronic commerce market.