- Tax demands are often raised on Electronic Commerce Operators (ECOs) like food aggregators due to unclear tax laws
- The main issue is determining whether ECOs are service providers or just facilitators between third-party suppliers and users
- ECOs operate under two models inventory model where they sell directly and marketplace model where they facilitate transactions
- Tax authorities view ECOs as service providers because they collect fees and process transactions, playing a significant role in them
- ECOs argue they are only facilitating services by providing a digital platform for third-party suppliers and users to connect
- The ongoing debate affects how ECOs are regulated and taxed under current laws
Source: financialexpress.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
