E-commerce is not just buying and selling online

WHEN most people hear “e-commerce”, they think of buying products online. But for governments, tax authorities, and regulators, e-commerce has become far more complex and crucial. How e-commerce is defined today affects everything from taxes and regulations to online protection.

Traditionally, e-commerce was buying and selling of goods and services over electronic networks with access to the Internet. This definition worked when the digital economy was small, and when online transactions resembled traditional trade except that it was conducted through a computer or phone rather than in a physical shop. That world no longer exists.