HM Revenue & Customs (HMRC) issued guidance on the new digital services tax in the UK and provided an online digital services tax registration portal that companies are to use to register for the tax.
Compliance issues answered in the HMRC guidance include the following.
While some compliance and payment deadlines are not immediately imminent, accurately tracking and reporting in-scope revenues to the level of detail required may be a challenge for some groups (particularly when taxpayers expect to make use of one or more of the available reliefs—e.g., the low margin exemption or the cross-border transaction relief for online marketplaces).
Taxpayers may also want to consider the implications that the tax may have on commercial decisions such as pricing. These aspects of the digital services tax may need to be considered as a matter of urgency for potentially affected groups.
Read an April 2020 report prepared by the KPMG member firm in the UK
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