UK Digital Services Tax 2020

The UK aims to raise £500m a year through digital services tax US resistance could complicate Britain’s efforts to forge a post-Brexit trade deal Britain is pressing ahead with plans for a new digital services #tax focused on large US technology companies, despite complaints by UK-based groups that they risk being caught by the measure. The levy, due to take effect in April after inclusion in Wednesday’s Budget, is aimed at securing what critics claim are hundreds of millions of pounds that Silicon Valley companies avoid paying by diverting profits to low-tax territories such as Ireland. But British tech companies highlight how the scope of the digital services tax goes well beyond big search engines and social #networks such as Google and #Facebook to include UK-based ecommerce groups. The stakes are high as Britain aims to raise almost £500m a year from the digital services tax: as well as pushback from tech companies, the #Trump administration in January threatened to impose tariffs on #UK car exports if the Johnson government proceeds with the levy. The spat could complicate Britain’s efforts to forge a post-Brexit trade deal with the US. Read more https://www.ft.com/content/a2ccbba8-5f0e-11ea-b0ab-339c2307bcd4