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The UK government has announced that they are thinking of implementing a 2% sales tax on E-commerce sellers. This tax would be applied to B2C sales on goods rather than services, and it is being considered to raise £2 billion and help to make life easier for physical stores competing with online retail stores. The tax would be paid by the seller as well as the 20% standard VAT rate. The UK consultation document detailed that the tax could “provide a sustainable and meaningful revenue source for the government.”

J&P Comments

In March, J&P announced that the government will be introducing a 2% digital service tax which will come into play on 1st April 2020. Although the new sales tax will not apply to large corporates, it will still be similar to the UK Digital Services Tax in the sense that they are both 2%.

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