I ىٛحطنا ًٍحطنا الله ىؽب Islamic University – Gaza ةعغ – تٛيلاؼلإا تؼياجنا Faculty of Commerce ةضاجخنا تٛهك Department of Accounting تبؼاحًنا وػل The Electronic Commerce Impacts on Improving Accounting Information Systems and Taxing Systems A Graduation Project Proposal Presented to the Faculty of Commerce The Islamic University of Gaza By Mohammed M. El Ghzali 120103093 Ahmed M. Al Rantissi 120091414 Mohammed H. Nasman 120091290 Supervisor's name Mr. Salah Shubair Supplementary Requirement to Obtain the Bachelor Degree in Accounting (English Department) Date August, 2012 II لْ قُ امً لعِ ًنِ دلْ ز بِّ وَ لْ وَ } ِ { ]114 :وط[ III The E-commerce Impacts on Improving Accounting Information Systems & Taxing Systems Regards Flowers have nectar publish fragrance to vast horizons Plantings have harvest season and candles have light and burning. For our dear fathers. For our precious mothers. For all our struggled brothers and sisters. For all our teachers and all who helped us to succeed. We regard with nectar pollinate and years learning harvest and seed that make it through leaning years. IV The E-commerce Impacts on Improving Accounting Information Systems & Taxing Systems Acknowledgments Praise and foremost thanks are due to Allah the most beneficent and merciful who has helped us to accomplish this research. We would like to express our deepest thanks to our research supervisor Mr. Salah shubair Also our thanks to our instructors, the academic accounting stuff specially our teachers and colleagues at the faculty of commerce at the IUG for their encouragement during the hard and difficult times. Special thanks are due to our parents, brothers and our sisters to their patience and moral support. V The E-commerce Impacts on Improving Accounting Information Systems & Taxing Systems ABSTRACT The explosion of information technology (IT) nowadays has created new phenomena in shopping activities. Consumers can easily buy products via Internet. Within a minute, the products will be delivered instantly and accurately. This scenario is known as e-commerce. The emergence of e- commerce affects consumers’ shopping behavior as well as accounting information and taxation systems. The using of e-commerce in auditing process was greatly spread to introduce the best services to clients and to immediate performance for audit work, according to the increase of financial transaction in the large establishments, the increase of its details and accuracy. Appearance of e-commerce has created economic challenges including the taxation systems in all developed and developing countries. This research summarizes these challenges and focuses on the inability of the income taxation system, or indirect taxes to follow the development in the e-commerce in all countries. It also identifies the main features for future taxation manipulation, and the measures that should be taken to achieve balance between the development of the e- commerce and the necessary change in the taxation systems. The objective of this research is to reveal the application of e-commerce in Palestine and its effect on accounting information of and tax systems by using descriptive analysis and questionnaires that distributed to a number of accountants in Gaza Strip, which has electronic web sites on the Internet. The research findings shown that there is to some extent an application of e-commerce in Palestine, there is a positive relationship between e-commerce and AIS and strong relationship between e- commerce and taxes. Finally, the study concluded a set of recommendations from the upgrading of e-commerce in the companies in Gaza strip, the need for the use of electronic accounting information, the obligation to pay tax through the enactment of tax laws for the profession of e-commerce, and the contribution of the Palestinian universities in doing what is necessary for the integration of diversification in the teaching of the impact of e-commerce in the development of AISs and the prevention of tax evasion and the application of e-commerce laws to protect the tax systems. VI The E-commerce Impacts on Improving Accounting Information Systems & Taxing Systems صخهًنا نكميو ,قوستلا ةطشنأ يف ةديدج رىاوظ قمخ دق مايلأا هذى يف تامومعملا ايجولونكت راجفنا . تاجتنملا ميمست متي فوس ,ةقيقد نوضغ يف تنرتنلإا ربع تاجتنملا ءرا ش ةلويسب نيكميتسممل . . رثؤي ةينورتكللإا ةراجتلا رويظ ةينورتكللإا ةراجتلا ونأب ويرانيسلا اذى فرعيو ةقدبو روفلا ىمع . لكشب رشتنا بئرا ضلا مظنو ةيبساحملا تامومعملا نع لاضف قوستمل نيكميتسملا كومس ىمع ءلامعمل تامدخلا لضفأ ميدقتل تاباسحلا ةعجرا م ةيممع يف ةينورتكللإا ةراجتلا مادختسا ريبك ةدايزو ,ةريبكلا تآشنملا يف ةيلاملا تلاماعملا ددع ةدايزل اقفو ,ةعجرا ملا لامعلأ يروفلا ءادلأاو . مظن كلذ يف امب ةيداصتقلاا تايدحتلا ةينورتكللاا ةراجتلا رويظ قمخ دقو ايتقدو ايميصافت ىمع زكريو ,تايدحتلا هذى صخمي ثحبلا اذى .ةيمانلا لودلاو ةمدقتملا لودلا عيمج يف بئرا ضلا ةينورتكللاا ةراجتلا يف روطتلا ةعباتمل ةرشابملا ريغ بئرا ضلا وأ لخدلا ةبيرض ماظن ةردق مدع . يتلا ريبادتلاو ,لبقتسملا يف يبيرضلا بعلاتمل ةيسيئرلا حملاملا ددحي ونأ امك نادمبلا عيمج يف مظنلا يف يرورضلا رييغتلاو ةينورتكللاا ةراجتلا يف ةيمنتلا نيب نزاوتلا قيقحتل اىذاختا يغبني تامومعملا مظن ىمع ةينورتكللإا ةراجتلا راثآ نع فشكلا وى ثحبلا اذى نم فديلاو .ةيبيرضلا لمعو يفصولا ليمحتلا قيرط نع رثلأا اذى نايب للاخ نم ةيبيرضلا مظنلاو ةيبساحملا عقاوم ايل يتلاو ,ةزغ عاطق يف تاكرش ىمع نيبساحملا نم ددع ىمع ايعيزوتو تانايبتسلاا . ةراجتمل قيبطت ام دح ىلإ كانى نأ ثحبلا جئاتن تريظأو تنرتنلإا ةكبش ىمع ةينورتكلا تامومعملا مظنو ةينورتكللإا ةراجتلا نيب ةيباجيإ ةقلاع كانىو ,نيطسمف يف ةينورتكللإا . ىلإ ةسرا دلا تصمخ ,را يخأو بئرا ضلاو ةينورتكللإا ةراجتلا نيب ةيوقلا ةقلاعلاو ,ةيبساحملا ةرورضو ,ةزغ عاطق تاكرش يف ةينورتكللإا ةراجتلا ىوتسم عفر نم تايصوتلا نم ةعومجم ةيبيرض نيناوق نس للاخ نم ةبيرضلا عفدب مزا تللااو ةينورتكللاا ةيبساحملا تامومعملا مادختسا عيونتلا جامدلإ يرورض وى ام لمعب ةينيطسمفلا تاعماجلا ةمىاسمو , ةينورتكللاا ةراجتلا ةنيمل يبيرضلا بريتلا عنمو ةيبساحملا تامومعملا مظن ريوطت يف ةينورتكللإا ةراجتلا رثأ سيردت يف . ةيبيرضلا مظنلا ةيامحل ةينورتكللاا ةراجتلا نيناوق قيبطتو VII The E-commerce Impacts on Improving Accounting Information Systems & Taxing Systems Table of contents Quran Verse III Abstract IV Acknowledgments V Regards VI Table of contents VIII Chapter One : Research Plan and Methodology 1 Research Introduction 2 Research Problem 3 Research Objective 3 Significance of the project (work) 4 Scope and limitations of the project (work) 4 Research Methodology 4 Research Hypothesis 5 Related works 5 The Organization of The Study 7 Chapter Two: Introduction to E-Commerce 8 Section I: Concepts, and the Reasons for the Spread of E- Commerce 9 Section II: The importance, benefits, and limitations of E- commerce 10 Section III: E-commerce relationships with all of the tax and AIS 13 Chapter Three: The Nature of AIS and Its Improvement 14 Section I: The definition of information system and AIS 15 Section II: Types, advantages, and objectives of AIS 15 Section III: Importance, and technology of AIS 17 Section IV: the nature of E-commerce and its relationship to the work of the 19 AIS Section V: The Impact of E-commerce on The Components of AIS 21 Section VI: Problems Facing the AIS with E-Commerce 24 VIII The E-commerce Impacts on Improving Accounting Information Systems & Taxing Systems Chapter Four: The Challenges of E-commerce because of Taxing System 26 Section I: Introduction to Tax System 27 Section II: The possibility and not possibility to impose a tax on E-commerce 28 Chapter five: The Reality of E-commerce and its Application in Palestine and the Challenges Faced By 33 Section I: The Reality of E-commerce in Palestine 34 Section II: Case Study 35 Chapter six: Methodology & Data Analysis 39 Section I: Methodology 40 Section II: Data Analysis 53 Chapter seven: conclusion & Recommendations 63 References 68 Appendix 72 IX Chapter 1 Research Plan and Methodology 1