This paper considers the reason why indirect tax issues arise in the context of electronic commerce and discusses relevant issues. To do so, the paper presents a simple framework to understand and examine these issues in the international context. It also identifies common and different issues of the VAT system and the RST system. It demonstrates that an emerging solution proposed in the context of the VAT system can be affected with difficult problems that were regarded to be problems of RST system. Also, a model to compare the level of tax compliance under the VAT and RST systems is presented and is used to examine the proposed solution.
