Digital Services Tax

Public Accounts Committee Closed Inquiry
Opened: 31 Oct 2022 Closed: 27 Jun 2023 Parliament page
In April 2020 HM Revenue & Customs (HMRC) introduced the Digital Services Tax, a 2% tax on the revenues of search engines, social media platforms and online marketplaces which derive value from UK users. The government expects to remove this tax when international reforms proposed by the Organisation for Economic … Read more
4 Recommendations
16 Conclusions
1 Report
1 Oral session
2 Letters
1 Event
Activity timeline 6 events
27 Jun
2023
Report published
27 Jun
2023
Correspondence
5 Apr
2023
Report published
12 Jan
2023
Correspondence
8 Dec
2022
Oral evidence
8 Dec
2022
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
Oral evidence sessions 1 session
8 Dec 2022
View on parliament.uk
Digital Services Tax
Jim Harra · HMRC Jon Sherman · HMRC Mike Williams · HM Treasury
Title HC No. Published Items Response
Forty-Fourth Report - The Digital Services Tax HC 732 5 Apr 2023 20 Responded
Recommendations & Conclusions
2 results
Clear
2 Recommendation Accepted
Forty-Fourth Report - The Digital …
HMRC implemented the Digital Services Tax with little cost, and the experience could provide valuable...
HMRC implemented the Digital Services Tax with little cost, and the experience could provide valuable lessons for other new taxes. HMRC implemented the tax on schedule for only £6.3 million, less than budgeted, though there will be ongoing compliance costs. … Read more
Government Response
The government agrees and says HMRC carries out an evaluation on the implementation of all measures that require new or updated systems and processes, and that they have since implemented other taxes learning lessons from the design and implementation of DST.
HM Treasury
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4 Recommendation Accepted
Forty-Fourth Report - The Digital …
HM Treasury and HMRC have a vital role in ensuring that the multilateral assurance framework...
HM Treasury and HMRC have a vital role in ensuring that the multilateral assurance framework for Pillar One of the OECD reforms will meet Parliament’s desire for accountability and transparency. The 140 jurisdictions involved in the development and implementation of … Read more
Government Response
The government agrees and will write to the committee with the UK's objectives for the multilateral administrative framework, including audit arrangements and states that the forecasted revenues for Amount A will be published in the usual way after OBR scrutiny, at a future fiscal event.
HM Treasury
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Government Response AI assessment · 9 of 4 classified
Accepted 2
Acknowledged 6
Not Addressed 1
Total 4 recs + 16 conclusions
Correspondence 2 letters
27 Jun 2023 Joint correspondence from Beth Russell, Second Permanent Secretary, HM Treasury, and Jim Harra, Chief Executive and First Permanent Secretary, HM Revenue & Customs, re Forty-Fourth Report of Session 2022-23 – Digital Services Tax, dated Forty-Fourth Report of Session 2022-23 – Digital Services Tax
Parliament page
12 Jan 2023 Correspondence from Victoria Atkins MP, Financial Secretary to the Treasury, re update on Making Tax Digital, dated 19 December 2022
Parliament page