Washington — The UK’s Digital Services Tax came into effect today. This follows the UK’s March 11 release of its 2020 Budget which announced that the UK will move forward with legislation to introduce a digital services tax of 2 percent. First payments under this new tax will be due in 2021.
The Computer & Communications Industry Association has long warned against discriminatory Internet taxes, and has called for an appropriate response from U.S. officials. CCIA remains supportive of the ongoing work taking place at the OECD to reach lasting solutions regarding taxation.
The following can be attributed to CCIA President Matt Schruers:
“It is discouraging that the United Kingdom has chosen to move forward with a national tax, which threatens to undermine ongoing global initiatives to address tax challenges in a changing economy. CCIA encourages policymakers to reduce barriers and redouble efforts to provide clarity to businesses that offer valuable digital services across borders.”
