As sellers begin to serve a worldwide customer base they will demand tax rules that make tax compliance simple and inexpensive. The only solution that meets the requirements of all is to simplify and increase the consistency of tax rules in all jurisdictions. Electronic VAT invoices, electronic tax forms, and electronic payment of tax will be the norm worldwide, since these simplify compliance and drive down transaction costs. In the case of U.S. and EU consumption taxes we see examples where the need to ease compliance burdens is forcing individual countries and states to conform to a workable norm. It is not difficult to imagine simplification efforts spreading to all of the OECD countries.
Electronic commerce is remote commerce.
E-commerce systems can be run from remote islands as easily as from local offices. If tax havens are allowed to develop the infrastructure to support high volumes of electronic transactions many companies will move there. Some will move there to gain a tax advantage over competitors. Others will go there to evade tax. Developed countries will not allow e-commerce to gravitate toward tax havens without a fight.