The location of the business is also an important variable. The VAT, or value added tax, is normally easy to calculate by estimating the wages, but how one calculates the value added of a computer is complicated. One person operating the whole site. Firms will likely declare that value added is lower in high cost areas. They could declare zero value in high tax states.
Approaches taken by various governments to Internet taxation are very different.
Mobility of tax base is greater for unit of production, and even greater for high tech industries. It is impossible to tax internet biz according to territory specific standards. There are no established criteria how to define territorial limits of states. All democracies adhere to basic tax freedom rights. Perhaps even sales of non-tangible products delivered electronically vs. diskettes.