A comprehensive international legal framework for e-commerce and an efficient infrastructure to support such a framework (e-signatures, document registries, dispute mechanisms, consumer protection, etc.) does not yet exist.
Legal frameworks in different jurisdictions vary in their recognition of e-commerce.
Management needs to consider legal and regulator issues related to the entity’s e-commerce activities, for example, whether the entity has adequate mechanisms for recognition of taxation liabilities, particularly sales or valued-added taxes, in various jurisdictions.
Factors that may give rise to taxes on e-commerce transactions include the place where the entity is legally registered, its physical operation are based, its web server is located, goods and services are supplied from, and its customers are located or goods and service are delivered.