Global menu

Our global pages


UK Government announces legislation for implementation of a UK digital service tax from April 2020

  • United Kingdom
  • Tax planning and consultancy
  • Technology, Media and Telecoms


Speed brief:

On 11 July 2019, the UK Government published legislation confirming its intention to introduce a digital services tax (DST). The key features of this DST are as follows:

• 2% tax on revenues (not profit) generated from UK users

• applicable to social media platforms, search engines and online marketplace activities, together with associated online advertising business activities

• applicable to businesses with worldwide group revenue from such activities exceeding £500m and £25m+ revenues from UK users

• payable annually on relevant revenue earned from 1 April 2020

The draft legislation and guidance are detailed and our dedicated digital economy tax team will be circulating a more detailed summary shortly.