E-commerce merchants could be taxed on inflated sales
Posted On June 12, 2020
‘Order brushing’ is an unscrupulous e-commerce tactic widely employed by shop owners. It is usually completed by placing falsified orders with fake user accounts and giving positive product reviews, with a direct aim to boost sales and ratings presented on the platforms. However, companies engaging in such practice might be taxed over the irregularities, which can be easily revealed by comparing revenue reported to tax regulators and collected from the e-commerce platforms.