The UK government confirmed it will be introducing a 2% digital service tax for large digital corporations including Facebook, Google, Apple and Amazon. The new digital service tax will commence on 1st April 2020, and is expected to raise an additional annual income by the end of the financial year ending in 2025. In the UK, the tax will only apply to companies that generate revenues higher than £500m, which British consumers make up £25m of it.
The digital tax service was initially introduced in France last year and was later adopted by other nations including Austria, Spain, Poland, Belgium and more. However, the digital tax service in France is 1% higher than Britain’s (3%) and is for companies that generate more than €750m (£655m) in global sales.