ABSTRACT

This study examines the relationship between taxation and electronic commerce within the context of Nigeria. This study adopt Ex-post facto and longitudinal research design, spanning a substantial time frame from the year 2000 to 2021, encompassing a comprehensive span of 22years. The sample is limited to tax- related variables that directly to e-commerce. These encompasses Value Added Tax (VAT), Stamp duties, Companies Income Tax (CIT), Personal Income Tax(PIT) and the Growth of E-commerce in Nigeria. The data employed the fully modified ordinary least squares (FMOLS) econometric technique in analysing data. A time series analysis was conducted to ascertain the stationarity or non-stationarity of the data. The study rigorously examined four distinct hypotheses. The findings of the study show that firstly, Value added taxes exert an adverse influence on the growth of e-commerce, through the effect is statistically insignificant. Secondly, an intriguing and statistically insignificant positive correlation correlation has surfaced in relation to stampe duties and their impact on e-commerce growth. Thirdly, the study revealed a weak and statistically significant positive association between personal income tax and the growth of e-commerce. Lastly, they is a robust statistically significant positive link between companies income tax and the growth of e-commerce. Collectively, these insight underscore the multifaceted interply of taxation and it's various facets within the e-commerce landscape of Nigeria. The study recommend policy reevaluation for Value Added Tax(VAT), exploring Stamp Duty mechanism, Personal Income Tax considerations and support for Company Income Tax (CIT).