The UK Chancellor of the Exchequer has just delivered the UK Budget 2020. This confirms that the UK government will introduce a new 2% DST on the revenues certain digital businesses earn from 1 April 2020. This new measure was first announced at Budget 2018. The announcement in Budget 2020 also confirms that the UK government remains committed to developing a multilateral solution to the challenges digitalisation has created for the corporate tax system and will repeal the UK DST once an appropriate global solution is in place.

It is expected that the features of the new UK DST will follow those proposed in draft legislation published in July 2019. See our more detailed commentary on the new UK DST:

Taxing the Digital Economy: first steps by the UK

New UK Digital Services Tax