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The question of where the profits generated in online trading are taxed is completely separate from sales tax. The current taxation practice focuses on the classic business model. The first point of reference for taxation law is the residence of the entrepreneur. This means that the country in which the company is registered or where the owners are based has first access. Only if there is a tax permanent establishment in the other country will the taxation right be transferred to this country proportionately. What is considered a permanent establishment and what is not is determined by local legislation, which is usually overshadowed by regulations in the relevant double taxation agreement.
An online trading company based abroad has the power to actively create or even avoid the creation of a tax permanent establishment. However, founding and registering in a state does not necessarily mean that the company is resident there for tax purposes. The statutory seat as the place of residence is regularly displaced in international tax law and replaced by the place of actual business management.
It would therefore be of no use to an online retailer living in Germany to set up a shell company in Dubai if he actually runs the online trading business from Germany. The company registered in Dubai would then be subject to tax in Germany as a whole. But if the corresponding substance is available in Dubai and the day-to-day business decisions are made there, Germany will come away empty-handed. At least so far.