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Digital Technology: Taxation

Question for Treasury

UIN 181360, tabled on 15 April 2021

To ask the Chancellor of the Exchequer, what steps his Department is taking to prevent large technology firms from passing on the Digital Services Tax to online retailers who use their platform.

Answered on

22 April 2021

The Digital Services Tax is a tax that ensures providers of search engines, social media platforms, and online marketplaces pay UK tax that reflects the value they derive from UK users.

It is for businesses to decide their pricing strategies and how those strategies take account of taxes to which they are liable.

It remains the Government’s aim to agree a comprehensive multilateral solution on the taxation of digital companies, and to remove the Digital Services Tax once this is implemented.

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