ARTICLE · 24 NOVEMBER 2020

Digital Services Tax – A Necessary Evil?

TMF Group BV

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The world is changing, and we witness this every day—the way in which we do business today is far away from anything we could have imagined even 10 years ago

GlobalTax

Emine Constantin

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The world is changing, and we witness this every day-the way in which we do business today is far away from anything we could have imagined even 10 years ago. Moving most activities online, reaching out to customers online, holding meetings online-all these might have seemed impossible a decade or two ago. But here we are today, witnessing the rise of digital technology, where there is no need for physical presence to do business in a particular jurisdiction.

The rise of digital technology has also created one of the biggest challenges of the global compliance world: the need to reconsider what "nexus" is. In short, the rise of digital technology has seen the "death" of the "physical" nexus and has created considerable debate around what "virtual" nexus is and how it must be defined.

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