With effect from 1 April 2020, the UK now has a digital services tax (DST), joining France and Italy which already have in place broadly similar taxes. The UK DST is charged at 2% on revenues made by large businesses that provide a social media service, search engine or online marketplace to UK-based users. While the legislation has not changed significantly since the draft issued in July 2019, the guidance has been comprehensively reworked and expanded, offering significantly more examples on how, in HMRC’s view, the DST should be applied by businesses.
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With effect from 1 April 2020, the UK now has a digital services tax (DST), joining France and Italy which already have in place broadly similar taxes. The UK DST is charged at 2% on revenues made by large businesses that provide a social media service, search engine or online marketplace to UK-based users. While the legislation has not changed significantly since the draft issued in July 2019, the guidance has been comprehensively reworked and expanded, offering significantly more examples on how, in HMRC’s view, the DST should be applied by businesses.
If you are not a subscriber, subscribe now to read this content.
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