UK to press ahead with Digital Services Tax despite warnings from US

05 Dec 2019

Prime Minister Boris Johnson has said that the UK will continue with plans to impose its Digital Services Tax (DST) on American tech giants, despite the US threatening France for a similar move.

The Conservative Party has promised to introduce the DST on the revenues of the largest digital companies.

The DST will apply a 2% tax to the revenues of certain digital businesses. A double threshold will exist, meaning that businesses will have to generate revenues from in-scope business models of at least £500 million globally to become taxable under the DST.

The tax was first proposed by the former Chancellor, Philip Hammond, and is expected to raise £500 million a year.

France has already imposed a 3% levy on digital companies with revenues above €750 million (£670 million), of which at least €25 million is generated from French users.

However, this has led to President Donald Trump threatening to impose significant tariffs on French imports to the US.

Commenting on the tax, the Prime Minister said: 'I do think we need to look at the operation of the big digital companies and huge revenues they have in this country and the amount of tax that they pay. We need to sort that out. They need to make a fairer contribution.'

Register for our newsletter

Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Register

Weston-super-Mare

34 Boulevard
Weston-super-Mare
Somerset
BS23 1NF

01934 415022


Home | Contact us | Accessibility | Disclaimer & Privacy Policy | Help | Site map |

© 2024 Four Fifty Partnership. All rights reserved.

We use cookies on this website, you can find more information about cookies here.


Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be found at auditregister.org.uk under the reference C001092613.

"four fifty partnership" is a trading name of Four Fifty Partnership Limited. Registered in England. Company Number 5032008. Registered Office 34 Boulevard, Weston super Mare, Somerset BS23 1NF.

Directors: Richard Acreman BSc CTA, Joy Boswell FCCA FCA, Peter Ison BA FCA and Nick Gravell FCCA FCA.

Professional Indemnity Insurers: Nexus Underwriting Limited, 52-56 Leadenhall Street, London, EC3A 2EB (Policy Number: 44402654). The territorial coverage is worldwide excluding professional business carried out from an office in the United States of America or Canada and excludes any action for a claim brought in any court in the United States of America or Canada.