Chris Sanger, EY’s Head of Tax Policy, comments:
“The Chancellor chose to proceed with the new Digital Services Tax that was invented under his predecessor’s predecessor. There has been much speculation that the Chancellor might defer the introduction, having seen the debate between the US and France. Following the threat of tariffs, the French government agreed to defer collection DST on this year’s revenue until 2021.
“Despite the government’s own scorecard showing the advancing of the liability due to the way that the government accounts for tax, the Chancellor has followed his French counterpart by deferring payment into 2021. More widely, despite the changes since the tax was introduced, it still seems that the Exchequer believes it will raise £440m per year.”