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Let's say a company has their headquarters in country A. A user from country B uploads a video filmed in country C. Someone from country D buys an ad to be plac
by Buge 9y ago
Let's say a company has their headquarters in country A. A user from country B uploads a video filmed in country C. Someone from country D buys an ad to be placed on that video, and the purchase is processed in country E, while the sales agent is based in country F. A different user in country G watches the video and clicks on the ad. The video was served from a server in country H, and the ad from a server in country I.
Where does the company pay taxes?
- pimmen 9y agoCountry D, I think. That's where the sale was made.
- sumedh 9y ago> Country D, I think. That's where the sale was made How can the company determine if a user is from Country D, ip address or what the user enters in the address box?
- ben_w 9y agoBilling address, given a sale is involved. Bank accounts tend to be attached to an address, and they can be traced if any silly loopholes get exploited.
- reacharavindh 9y agoIsn't that an available information from the user's credit card/bank account? Now, of course there will be people who are residents of a different country or have cards from multiple countries, but I'd expect that to be a negligible fraction.
- tonfa 9y agoAre you talking about sales tax, or corporate taxes? Out of curiosity, what makes you think it should be D, assuming you were talking about corporate tax? With a much simpler example, if a merchant in e.g. France sells a product to a consumer in e.g. USA, the VAT/import/sales tax should go to the US but the corporate tax on profit for the merchant is taxed in France.
- pimmen 9y agoSales tax, depending on the structure of the company. If a company has a solid presence in the country where the sale was made, with physical sales and marketing departments, who make the sale it will be taxed there. This is the case for Facebook and Google in the EU.
- deleted 9y ago[deleted]
- tonfa 9y agoAssuming you are talking about corporate taxes (not sales tax / VAT). If those were all different companies (one company doing the sales, one company hosting the infrastructure, one company developing the system, etc.) doing arm's length transaction it would be much simpler, each company would pay local tax in its own profit.