The business world is becoming increasingly more global. In the global market, shipping terminology is guided by the use of Incoterms. Incoterms are international shipping terminology that allocate the costs, responsibilities, and risks the buyer and the seller must bear during the shipment. Alternatively, in the United States, shipping terminology and sales contracts are based off the Uniform Commercial Code. The purpose of this paper has been to identify current research on the tax implications of Incoterms. The methodology was a literature review of current research and discussions over tax consequences emphasizing international taxes. In an analysis of Canadian indirect taxes, Incoterms can have unwanted tax implications if the appropriate Incoterms is not selected to match the parties’ intentions. Furthermore, more research and discussion should be continued as Incoterms usage will increase as businesses in the United States continue to expand internationally
