too complicated

Spending time watching parliamentary debate. They are talking about a new digital services tax. Why do we need a special tax bill for individual services?

Just tax anybody for anything they sell for profit in any particular country. That makes things much easier. There is one principle to get part of the profits.

We need two taxes for every company, a proft of sale tax to replace VAT and a corporation tax.

Every sale that goes into a sales spreadsheet, has the buyer’s address on it, so from that record, the profit of sales taxes will be declared in the country of the customer.

All that argument whether online services damage local business are not relevant. As we all have seen the current Covid-19 crisis made local shops close whilst online services like Amazon could deliver those goods.

On the other hand should a global technical crisis shut digital services down, then we’ll rely on local shops more.

What it needs is full flexibility to manage any eventuality.

Paying profit of sales taxes directly to the country of the customer will resolve a lot of problems like import or export tariffs.

Any corporation tax will have to be paid to the country of residence.

We need to get away from trying to establish principles that force governments to keep local high streets open as a matter of first priority.

I could not get the same selection in a local shopt as I can get it on Amazon. Also from environmental consideration, any business storing stock centrally will have less environmental carbon footprint than a company who has to shop goods to a local display location and then back to the customer.

The footfall in any locality attracts less buyers than an online sales outlet can. I reckon we need to produce much more goods to display them in every corner of the world than we need to produce to display them online and sell them to any location on the globe.

If we produce just to display in any geographical location we produce much more carbon than if we produce to display online and then sell to all who want.

That way, with only 2 taxes levied, and profits being paid directly to the country of the consumer and country of business host, we enable business to settle production anywhere, where they can get the best corporation tax rate and the best transport and storage conditions for their goods.

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