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 5 events
27 Jun
2023
Report published
27 Jun
2023
Correspondence
5 Apr
2023
Report published
12 Jan
2023
Correspondence
8 Dec
2022
Oral evidence
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
3 results
Clear
5 Recommendation Not Addressed
Forty-Fourth Report - The Digital …
There is a significant risk that the Digital Services Tax may require extension beyond its...
There is a significant risk that the Digital Services Tax may require extension beyond its intended lifespan, and that this could prompt changes in taxpayer behaviour. Should the OECD reforms be delayed beyond 2024, the Government is required by law … Read more
Government Response
The government response focuses on Department for Business and Trade efforts to recoup local authority grant payments made in error in the first wave of Covid support schemes, but it does not address the need for HMRC to develop a contingency plan for the potential extension of the Digital Services Tax and a robust process for addressing non-cooperation with its compliance regime.
HM Treasury
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10 Conclusion Not Addressed
Forty-Fourth Report - The Digital …
Pillar One’s scope will differ from that of the Digital Services Tax.
Pillar One’s scope will differ from that of the Digital Services Tax. First, it will be a tax on profits rather than revenues. Second, it will apply to a much broader range of activities as it is not simply aimed … Read more
Government Response
The government's response outlines the scope and aims for finalising Pillar One's Amount A and B rules in 2023, without directly addressing the committee's observations on how DST experience will inform Pillar One implementation.
HM Treasury
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15 Conclusion
Forty-Fourth Report - The Digital …
As long as Pillar One is introduced at some point, these issues will be partly...
As long as Pillar One is introduced at some point, these issues will be partly offset by the fact that those businesses paying Digital Services Tax and Pillar One will be able to reduce their Corporation Tax payments by the … Read more
HM Treasury
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Government Response AI assessment · 19 of 4 classified
Accepted 9
Acknowledged 7
Not Addressed 2
Rejected 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