The role of the digital economy and its impact on indirect taxation

In the context of the rapid development of the digital economy, taxation issues are becoming increasingly significant. Indirect taxes have a substantial impact on digital companies, electronic commerce, and consumers of digital services. On the one hand, they constitute an important source of government budget revenues; on the other hand, they may create obstacles to the development of innovative technologies and international trade.

This article examines the impact of indirect taxes on the digital economy, their role in regulating the sector, and their potential effects on businesses and users.

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In addition, particular attention is paid to the specific features of the functioning of the digital economy, such as the cross-border nature of electronic services, the absence of physical presence of service providers, and the widespread use of digital platforms. These factors significantly complicate tax administration processes and necessitate a reconsideration of traditional approaches to the collection of indirect taxes.

The study analyzes the impact of value-added tax and other forms of indirect taxation on the development of electronic commerce and digital services, and assesses their role in shaping the revenue side of the state budget. Furthermore, the need to adapt tax policy to the conditions of digitalization in order to ensure a balance between stimulating innovation and safeguarding the fiscal interests of the state is emphasized.