International Journal of Research and Innovation in Social Science (IJRISS) |Volume VI, Issue X, October 2022|ISSN 2454-6186
Inside the Digital Society: Electronic Commerce Tax Barriers in Zimbabwe
Eliot Dzindikwa
Zimbabwe Open University, Harare, Zimbabwe.
Abstract: Technology as in electronic commerce is now allowing businesses to penetrate the global markets. Electronic commerce involves trading online using the internet as a conduit. The objective of this study was to investigate the barriers to electronic taxation in Zimbabwe. A qualitative approach was adopted for this study. The researcher deployed a descriptive survey design. Purposive sampling was used to select a sample of 60 participants. Virtual interviews were used to generate data from the participants. It was found that electronic commerce tax is very difficult to collect in Zimbabwe due lack of proper infrastructure and failure by Zimbabwe to implement policies on electronic commerce. Therefore, it is recommended that Zimbabwe invest in electronic tax infrastructure and establish a strong legislative system that support digital collection of taxes.
Keywords: E-commerce, electronic tax, digital tax, taxation, ZIMRA, VAT
I. INTRODUCTION
Technology is opening a world of possibilities previously unavailable to businesses and consumers. In today’s digital economy small and big companies compete for services and markets on the global terrain. The Organisation of Economic Cooperation and Development (OECD) in 2021 defines electronic commerce (e-commerce) as trading online using the internet as a conduit. In support [1] propounds that e-commerce communicates and collaborates emerging technologies such as IOT, big Data, Virtual Reality, Electronic Data Interchange, and Electronic Funds Transfer. International Telecommunication Union [2] defines electronic commerce as a system of trading that primarily uses the internet as the main conduit of interaction with customers. E-commerce includes other functions such as customer service, collaborating with business customers or partners and conducting transactions through the internet ([3] [4] [5] [6]).
Reference [7] supports that the emergence of e-commerce promotes organisation to trade anywhere anytime. Globally, electronic business holds tremendous potentials as a formidable source of governmental revenue in the light of globalisation and increasing automation of commercial transactions. With e-commerce a wide array of commercial activities are carried out online and this enable trade without the confines of geographical boundaries. As such the paying of digital tax is insignificant as compared to brick-and-mortar business. This study sought to unpack the barriers of electronic commerce tax in Zimbabwe.