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Digital Services Taxes DST – global tracker

Digital Services Taxes (DST) are a new class of taxes being implemented around the world to tackle the perceived unfairness of non-resident digital companies to sell across borders without being liable to local corporate income taxes. They are typically a percentage charge of turnover from in-scope activities, with an initial sales threshold based on in-country and global income. Below is VAT Calc’s global tracker of proposed and implemented DST’s.

The OECD’s Inclusive Framework on Base Erosion and Profit Shifting proposal has been adopted by almost 140 countries, as well as the G7 and G20, to reform and harmonise the tax treatment of foreign digital income and minimum tax rates. This includes ‘Pillar 1’ which would provide certainty over the rules for DST’s and the right to tax non-resident local sales. Note: VAT on digital services is not included.

Europe Digital Services Taxes (DST)

Country Status Rate Annual sales threshold Scope
In-country income Global income
EU Digital Levy Paused 3% EU €50m €750m Marketplaces; advertising
Austria Jan 2020 5% €25m €750m Advertising
Belgium Paused 3% €5m €750m Advertising; Intermediation; Data Transmission
Czech Jan 2022 5% CZK 100m €750m Advertising; digital services
France Jan 2019 3% €25m €750m Digital interface; advertising; user data
Greece Jul 2019 Nil n/a Tourist accomodation
Hungary Jul 2019 0% to Dec 2022; then 7.5% HUF 100m n/a Media content; Advertising
Italy Jan 2020 3% €5.5m €750m Advertising; digital interfaces; user data
Latvia Jan 2022 3% €750m Digital interface; advertising; user data
Norway Proposed Subject to progress on OECD plans
Poland Jul 2020 1.5% Streaming media and Audiovisual media service and audiovisual commercial communication
Slovakia Proposed Advertising; user data
Spain Jan 2021 3% €3m €750m Advertising; user data
Turkey Mar 2020 7.5% TRY 20m €750m Advertising; Content; social media
UK Apr 2020 2% UK £25m £500m Marketplaces; Social media; search engines

Asia Pacific Digital Services Taxes (DST)

Country Status Rate Annual sales threshold Scope
In-country income Global income
India Jun 2016 6% Rs 2cores n/a Advertising
India Apr 2020 2% INR 20m n/a Goods and digital services sellers and facilitating marketplaces
Indonesia Mar 2020 TBC E-commerce
New Zealand Proposed 2-3% NZ$3.5m NZ$1.1bn Social media; Content sharing; Search engine; user data; Intermediation;
Pakistan Sep 2021 2% Nil Nil Withholding tax on marketplaces
Kyrgystan Jan 2022 2% Nil Nil Tax on digital services B2B and B2C
Sierra Leone Jan 2021 1.5%
Vietnam 2021 TBC 1.5% Ecommerce tax on marketplace revenues

Americas Digital Services Taxes (DST)

Country Status Rate Annual sales threshold Scope
In-country income Global income
Argentina Dec 2020 5%, 10%, 15% Online gambling
Brazil - 1 Proposed 1-5% BRL 100m BRL 3bn Advertising; user data; interfaces;
Brazil - 2 Proposed 3% on COFINS BRL 78m $240m Advertising; platform services for selling goods and services
Brazil - 3 Proposed 3% BRL 4.5bn Advertising; platform interaction services; data
Brazil - 4 Proposed 3% - 10% BRL 100m Media; apps; gaming; gambling (10%); software
Brazil - 5 Proposed 3% Advertising; user data; payment platforms; media
Canada Jan 2022 proposal 3% CAD 20m €750m Advertising, online marketplaces, social media and the sale/licensing of user data.
Costa Rica Nov 2019 Tourist accommodation rentals
Paraguay Jan 2021 4.5% Non-resident: media; gaming; data processing; advertising; gambling; software
Uruguay Jan 2018 Income Tax Digital services Non-residents

Africa & Middle East Digital Services Taxes (DST)

Country Status Rate Annual sales threshold Scope
In-country income Global income
Kenya Jan 2021 1.5% n/a nil Digital interfaces services, including most non-resident e-services
Israel Proposed 3%-5% Digital interface; advertising; user data
South Africa Proposed
Tunisia Jan 2020 3% Apps; digital services (non-resident only)
Zimbabwe Jan 2019 5% Digital and ecommerce

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