Taxation of sales transactions by states is on hold in the United States and some but not all other countries. Expect this issue to be revived because the potential for increased revenue to the states is significant.

Electronic transactions are the many kinds of transactions that take place online, including

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contractual dealings, buying and selling of goods and services, information exchange, financial

transactions (credit card payments; payor services, such as PayPal; and money transfers), and

communications. When developing a website, the small business owner must ensure that all

online business transactions will be secure, particularly those involving money. This discussion

must take place with whomever is developing your website.


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