The UK tax authorities on July 11 published draft legislation and draft guidance for a digital services tax (DST) to become effective April 1, 2020. These are available for public consultation until September 5, 2019.
The DST is expected to apply by default at 2% of deemed UK revenues derived in excess of £25m, where the group’s total global revenues from in-scope activities exceed £500m. Revenues are considered from in-scope activities if derived in connection with providing users with search engine, online marketplace, or social media services, and include revenues from associated advertising businesses. Thus, UK revenues in scope are those linked to UK users but may not be derived from UK sources, and businesses conducting in-scope activities may need to perform complex allocations.
Source PwC
Latest Posts in "United Kingdom"
- SAP Selected by HMRC to Lead Major Technology Transformation of the UK Tax System
- Supreme Court Clarifies VAT Recovery Rules for Corporate Groups After Hotel La Tour Decision
- Appeal Dismissed: Input VAT Denial and Personal Liability Upheld on Kittel Grounds for One Call Consultants
- Input VAT Denial Upheld: Kittel Assessment and Penalties Made Within Statutory Time Limit
- Boehringer Ruling: Could £2.5bn VAT Reclaims Transform UK Pharma and Healthcare Forever?
