Abstract:
With the revolutionary progress of digital technology, the sharing economy has
become a key transformative force in the global economic structure. It breaks the
conventional corporate transaction paradigm and establishes an innovative system for
resource sharing, which is crucial for optimising resource allocation and enhancing
utilisation efficiency. However, this new business model faces additional challenges
with uncertainty in tax laws and delays in regulations. B2C (business to customer) and
C2C (customer to customer) are the two most common business models in the sharing
economy. Under the B2C model, businesses provide products or services directly to
customers through sharing platforms, and under the C2C model, transactions between
peers are more frequent, but the absence of clear tax regulations and law enforcement
has resulted in growing issues of tax base erosion and unfair competition. This
research analyses the structure and operation of several sharing economy platforms
through case studies under two business models: business-to-customer and
customer-to-customer. It discusses the effects of the sharing economy on the existing
tax system within these two types of business models and assesses the issues. And
effects of regulatory frameworks and challenges on tax among different jurisdictions.
Based on the existing tax policies in different regions, some suggestions are put
forward for China’s tax policy, which is “wading the river by groping for stones”.
