The Treasury has set interest rates for under and overpayments of digital services tax, bringing DST payments into the harmonised interest regime in the Taxes (Interest Rate) Regulations, SI 1989/1297.
The Taxes (Interest Rate) (Amendment No. 2) Regulations, SI 2020/995, make the necessary changes with effect from 14 October 2020. The rates are as follows:
For payments of DST paid before the required due date: reference rate less 0.25%, or 0.5% if greater.
For repayments of overpaid DST: reference rate less 1%, or 0.5% if greater.
For underpayments of DST: reference rate plus 2.5%.
‘Reference rate’ is the official bank rate as determined by the most recent meeting of the Monetary Policy Committee of the Bank of England.
HMRC has also published an explanatory note to accompany the regulations.
The Treasury has set interest rates for under and overpayments of digital services tax, bringing DST payments into the harmonised interest regime in the Taxes (Interest Rate) Regulations, SI 1989/1297.
The Taxes (Interest Rate) (Amendment No. 2) Regulations, SI 2020/995, make the necessary changes with effect from 14 October 2020. The rates are as follows:
For payments of DST paid before the required due date: reference rate less 0.25%, or 0.5% if greater.
For repayments of overpaid DST: reference rate less 1%, or 0.5% if greater.
For underpayments of DST: reference rate plus 2.5%.
‘Reference rate’ is the official bank rate as determined by the most recent meeting of the Monetary Policy Committee of the Bank of England.
HMRC has also published an explanatory note to accompany the regulations.
