The UK Digital Services Tax: Ashes to Ashes, DST to Dust?

    View Author August 2019

    In July 2019, the UK government proposed legislation to establish a digital services tax (DST) in the UK. If implemented, large multinational enterprises (MNEs) conducting highly digitalized businesses that derive value from UK users would face a 2% tax on their UK revenues. In this article, published in the Tax Journal, Jeff VanderWolk, Tax Strategy & Benefits Practice partner, and Robert O’Hare, Tax Strategy & Benefits attorney, summarize the proposed legislation and consider the perspective of the US government, which opposes such unilateral actions, as well as potential changes to this proposal now that Boris Johnson is prime minister.