Chancellor of the Exchequer Rishi Sunak did not mention the UK’s digital services tax (DST) in his Budget on 11 March 2020 (nor indeed during his summer economic update on 8 July) but the Budget report confirmed that the UK would introduce a DST with effect from 1 April 2020. The legislation was incorporated into part two of Finance Bill 2019/21 which is now FA 2020 following royal assent on 22 July 2020. The UK DST is now in full force and effect.
The official policy rationale for introducing a DST is familiar and unchanged: digitalisation of the economy has allowed businesses access to the UK market without creating a taxable presence here. As a result under the existing...
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Chancellor of the Exchequer Rishi Sunak did not mention the UK’s digital services tax (DST) in his Budget on 11 March 2020 (nor indeed during his summer economic update on 8 July) but the Budget report confirmed that the UK would introduce a DST with effect from 1 April 2020. The legislation was incorporated into part two of Finance Bill 2019/21 which is now FA 2020 following royal assent on 22 July 2020. The UK DST is now in full force and effect.
The official policy rationale for introducing a DST is familiar and unchanged: digitalisation of the economy has allowed businesses access to the UK market without creating a taxable presence here. As a result under the existing...
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