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ARTICLE · 18 APRIL 2018

Digital Tax: A Virtual Certainty?

Mishcon de Reya LLP
Mishcon de Reya LLP
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Mishcon de Reya LLP

Mishcon de Reya LLP

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As part of the Spring Statement on 13 March 2018, the UK government presented an updated position paper on digital taxation, i.e. the taxation ...

European UnionTax
Ceri Stoner
Ceri Stoner
Gary Richards
Gary Richards
John Skoulding
John Skoulding

As part of the Spring Statement on 13 March 2018, the UK government presented an updated position paper on digital taxation, i.e. the taxation of the user-generated value of businesses selling online advertising space, providing digital intermediary activities or selling user-derived data. This follows on from its position paper on the topic published in November 2017. The latest paper provides an update on the UK's thinking on how value is generated by users in the context of digital business. It also provides further detail as to how and where such value should be taxed. In broad terms, the UK government still favours taxing such digital business value in the jurisdiction of the user and seems prepared to unilaterally introduce a digital tax on revenues in the UK in order to achieve this.

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