Analysis of taxation and government regulation of e-commerce

Abstract

this article analyzes the challenges and
strategies for taxing and regulating e-commerce,
with a focus on Uzbekistan’s context and global prac
tices. It explores key issues such as defining the tax
base, determining tax jurisdiction, and establishing
effective tax collection mechanisms. The study high
lights the complexities of taxing digital goods and
services, cross-border transactions, and informal
trade on social media platforms. Drawing on inter
national experiences from the OECD, EU, USA, China,
and CIS countries, the article proposes a hybrid tax
ation model tailored to Uzbekistan’s economic and
legal environment. This model emphasizes flexibil
ity, fairness, systematic coverage, and digitalization,
incorporating tools like automated identification
platforms, unified tax reporting systems, and a mark
ing system for e-commerce entities. Additionally, it
suggests integrating an “e-commerce” function into
card-to-card payment systems to enhance transpar
ency and tax compliance. The proposed mechanisms
aim to increase state revenue, strengthen regulatory
oversight, reduce fraud, and align with international
standards while fostering a competitive and equitable
e-commerce ecosystem.