Accounting and Taxation of E-Commerce: Realities and Challenges

Kateryna Shevchuk, Nataliia Kuzyk and Olena Boyarova
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Kateryna Shevchuk: National University of Life and Environmental Sciences of Ukraine, Kyiv, Ukraine
Nataliia Kuzyk: National University of Life and Environmental Sciences of Ukraine, Kyiv, Ukraine
Olena Boyarova: National University of Life and Environmental Sciences of Ukraine, Kyiv, Ukraine

Oblik i finansi, 2024, issue 4, 140-149

Abstract: The rapid development of information technologies has led to the transformation of traditional approaches to doing business and the formation of a separate type of economic activity - electronic commerce. The article aims to reveal the features of accounting and taxation of e-commerce and identify problematic aspects and challenges associated with digitalizing business processes in this area. The study's results indicate that differences between e-commerce and traditional commercial activity types impact the accounting organization. The practical organization of accounting for e-commerce is of great importance for transparent taxation, and its optimization using digital tools is a key factor in increasing the competitiveness of enterprises in modern conditions. While small businesses can use simple cloud-based CRM systems, medium and large companies prefer ERP systems that integrate with online marketplaces, offer business analytics and inventory management, and contain built-in financial reports to control expenses and income. The digitalization of accounting and settlement operations, especially in martial law conditions, is accompanied by challenges (risks of power and Internet outages, technological failures, and cyberattacks). Therefore, e-commerce entities must use backup offline mechanisms and autonomous communication systems to ensure uninterrupted settlement. The article analyzes existing software products for accounting automation, considering the scale of the business and taxation requirements. It provides separate criteria for choosing solutions that can be useful for the accounting practice of e-commerce by various business entities - from individual entrepreneurs to medium-sized and large businesses. A comparative analysis of settlement transaction registrars indicates the need to integrate accounting systems with mechanisms for taxing settlement transactions. The features of disclosing in accounting the costs of creating and operating an online store website and other accounting and tax aspects presented in the article form a better understanding of the organizational principles of e-commerce in Ukraine under martial law.

Keywords: e-commerce; accounting; taxation; digitalization of accounting; settlement transaction registrars; digital assets; online store website (search for similar items in EconPapers)
JEL-codes: H21 L81 M41 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:iaf:journl:y:2024:i:4:p:140-149

DOI: 10.33146/2307-9878-2024-4(106)-140-149

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