UK: Government announces plans for Digital Services Tax
The UK Government has published draft legislation for the Digital Services Tax, which will be introduced in the Finance Bill 2019-20. The bill levies a 2 percent tax on revenue sourced from social media, search engines and online marketplaces that derive value from UK users.
According to the bill, the Digital Services Tax will apply to businesses with at least GBP 500 million of worldwide digital revenue and GPB 25 million of UK digital sales.
The new rules are set to take effect on 1 April 2020.