Digital Technology: Taxation

Question

The UK introduced a 2 per cent Digital Services Tax (DST) in April 2020 to ensure that providers of search engines, social media platforms, and online marketplaces pay UK tax on digital services that reflects the value they derive from UK users.

The UK remains committed to reaching a global solution on reallocation of taxing rights under Pillar One of the G20-OECD Inclusive Framework project. It has always been our intention to remove the DST once this global solution is in place.

The UK continues multi-lateral discussions to reach that global solution.