Digital Services Tax news
Digital services taxes and related levies on digital advertising and online platforms, including legal challenges and the international negotiations around them, collected from the sources AskColm monitors.
152 articles in the archive, showing the latest 50.
SaaS Subscription Fee Is Not “Royalty” Merely Because Technology Does the Work
ITAT Mumbai has ruled that SaaS subscription fees do not constitute 'royalty' simply because technology performs the underlying work. The tribunal held that access to a communication platform does not amount to use of a 'process' under Section 9(1)(vi) of…
Botswana VAT Portal for Non-Resident Digital Service Providers
Botswana's VAT regime for non-resident remote service providers became fully effective from October 1, 2026. Foreign providers of remote services that are registered or required to register must begin collecting VAT. A dedicated VAT portal has been established for non-resident…
Tanzania Raises Digital Services Tax to 3% for Non-Resident Providers
Tanzania has increased its Digital Services Tax from 2% to 3% for non-resident digital service providers, with effect from 1 July 2026. Providers are required to report and pay the tax on a monthly basis.
Rwanda Digital Services VAT Raises Compliance Questions
Rwanda has introduced a VAT regime for non-resident digital service providers, but questions remain around compliance in areas including registration requirements, thresholds and the treatment of business-to-business transactions.
The hitch in taxing AI: labour is local, capital isn’t
The article examines the structural challenge of taxing AI-driven economic activity, highlighting the fundamental mismatch between where labour income is generated and taxed locally versus where AI capital and profits accumulate, often in low-tax jurisdictions. As AI displaces traditional labour,…
Choi Presents “AI Deceleration (or Acceleration) by Taxation” Today at Missouri
A paper examining how taxation could be used to slow or accelerate the development of artificial intelligence is being presented at a University of Missouri tax policy colloquium. The session is open to outside participants via Zoom.
Uzbekistan Updates VAT Rules for Non-Resident Digital Service Providers
Uzbekistan is introducing updated VAT rules for non-resident digital service providers, e-commerce platforms and digital marketplaces, with the new requirements taking effect from December 2026.
Indonesia Updates VAT Collection for Digital Services
Indonesia has introduced new VAT collection rules for cross-border digital transactions. The updated framework involves designated banks and payment providers in the collection of VAT on such services.
Kazakhstan VAT on digital services & e-commerce update
Kazakhstan has introduced VAT obligations on digital services and e-commerce supplied by non-resident providers to Kazakhstani consumers, effective January 2022. Foreign digital service providers, including those offering streaming, software, and online marketplace services, are required to register for VAT and…
Not Worth the Wait: Reflections on the Maryland Digital Ad Tax Rulings
Three academics have published a critique of the Maryland Tax Court's recent rulings on the state's digital advertising tax, arguing that the decisions fail to adequately address key differences relevant to the cases.
US Illinois Targeted Advertising Tax Challenged by NetChoice
NetChoice is challenging Illinois' Targeted Advertising Services Tax, which applies a 10% rate and is scheduled to take effect in January 2027. The challenge raises arguments based on constitutional and federal law grounds.
Indonesia to Launch VAT Collection System for Cross-Border Digital Transactions
Indonesia is set to launch a new VAT collection system targeting cross-border digital transactions, extending its indirect tax reach to foreign digital service providers supplying Indonesian consumers. The initiative builds on Indonesia's existing digital VAT framework and aims to improve…
State Tax Developments: Social Media, Digital Ads, Sales Tax, and More
A roundup of recent U.S. state-level tax developments covers several notable areas including social media platforms, digital advertising taxes, and sales tax obligations. States continue to expand their tax reach into digital services and online advertising, with new rulings, legislative…
Indonesia VAT on Non-Resident Providers of Digital Services
Indonesia applies VAT to foreign providers of digital services. Rules cover registration thresholds under the PMSE framework, a 12% VAT rate, business-to-business arrangements, and monthly filing requirements.
US Illinois Social Media Fee Challenged by NetChoice
NetChoice is legally challenging a new Social Media Platform Fee introduced in Illinois, which is due to take effect in January 2027. The dispute has implications for compliance with the fee.
Maryland Fight for Digital Ad Tax is Not Over—Yet
Maryland is appealing a court ruling that struck down its digital advertising tax. The state enacted the levy in 2021 to help fund K-12 education reform, and the legal battle over whether the tax can stand is continuing.
Uzbekistan: New tax obligations for digital services and e-commerce
Uzbekistan has introduced new tax obligations for non-resident businesses that provide electronic services or sell goods online, as part of new digital services tax rules.
Uzbekistan VAT on digital services and e-commerce goods update
Uzbekistan has updated its VAT rules applying to digital services and e-commerce goods supplied by foreign businesses. Non-resident digital service providers are required to register for VAT in Uzbekistan and account for tax on supplies made to local consumers. The…
Illinois Targeted Advertising Tax Challenged Before 2027 Effective Date
Illinois's newly enacted targeted advertising tax, set to take effect in 2027, is facing a legal challenge before it can be implemented. The tax targets revenue derived from digital targeted advertising directed at Illinois residents, and opponents are contesting its…
Maryland Appeals Google, Apple, Peacock’s Take Down of Ad Tax
Maryland is appealing a court decision that struck down its digital advertising tax, which had been challenged by major tech companies including Google, Apple, and Peacock. The state's digital advertising services tax, one of the first of its kind in…
Republican Floats Package to Deter DSTs, Boost Foreign Credits
A Republican lawmaker has floated a legislative package aimed at deterring foreign Digital Services Taxes (DSTs) that disproportionately target US tech companies, while also proposing enhancements to foreign tax credits. The proposal reflects ongoing US tensions with countries imposing unilateral…
Oklahoma Letter Ruling Treats Hosted SaaS and Related Services as Exempt
An Oklahoma letter ruling has determined that hosted Software-as-a-Service (SaaS) and certain related services qualify for sales tax exemption within the state. The ruling provides important guidance for technology vendors and their customers on how Oklahoma tax authorities classify cloud-based…
EU holds back on Digital Services Tax as US raises retaliation threat
The European Union has paused plans to introduce a Digital Services Tax following threats from the United States to impose retaliatory tariffs on European goods. The US has signalled strong opposition to DST measures it views as discriminatory against American…
UPI MDR to Attract 18% GST, Merchants Can Claim ITC
India is considering applying 18% GST to the Merchant Discount Rate (MDR) on UPI transactions, a policy shift that would treat MDR as a taxable service. Under the proposed framework, merchants would be liable to pay GST on MDR charges…
Ukraine Approves E-Commerce VAT Reform and Postal Revenue Fund for Military Needs
Ukraine has approved legislative reforms introducing VAT obligations on e-commerce transactions, targeting digital goods and services sold to Ukrainian consumers by foreign suppliers. Alongside this, a new postal revenue fund has been established to direct proceeds toward military needs amid…
Peru Updates Digital Services VAT Return to Allow Currency Corrections
Peru has updated its VAT return process for digital services to permit corrections related to currency. Non-resident digital service providers supplying to Peruvian consumers are subject to VAT obligations, and this update addresses a practical compliance gap by allowing currency-related…
Power and Tax Policy: When Does Leveraging Market Access as a Coercive Geoeconomic Tool Succeed?
This analysis examines Section 899 of the U.S. tax code as a retaliatory geoeconomic tool, exploring how leveraging market access through tax policy can function as coercive statecraft. The piece assesses historical and contemporary cases where countries have used discriminatory…
What the 1990s-Era “Bit Tax” Can Teach Us About AI Tax Proposals
Drawing lessons from the 1990s proposed 'bit tax' on internet data transfers, this article critically evaluates current proposals to levy taxes on AI-related activities such as AI-generated content or compute usage. The original bit tax was abandoned due to its…
Shanske: Md. Court Got Ad Tax Similarity Analysis Wrong
Academic commentary arguing that a Maryland court incorrectly applied its similarity analysis in evaluating a digital advertising tax challenge. The piece critiques the court's legal reasoning around whether the Maryland digital advertising services tax is sufficiently similar to other taxes…
CARF forces crypto platforms to rethink customer data
The OECD's Crypto-Asset Reporting Framework (CARF) is compelling crypto platforms to fundamentally overhaul how they collect, verify, and store customer data. Set to take effect in participating jurisdictions from 2026, CARF requires exchanges and other crypto intermediaries to report user…
Lawsuits Challenge New Ill. Taxes On Digital Ads, Social Media
Legal challenges have been filed against Illinois's newly enacted taxes targeting digital advertising and social media platforms. The lawsuits argue the taxes are unconstitutional, potentially violating First Amendment protections and federal statutes such as the Internet Tax Freedom Act. Illinois…
FBR mandates 5pc tax on social media influencers & content creators
Pakistan's Federal Board of Revenue (FBR) has introduced a 5% withholding tax on income earned by social media influencers and digital content creators. This new mandate targets individuals monetising platforms such as YouTube, Instagram, and TikTok, bringing them within the…
Slovenia VAT Rules for Short-Term Rentals via Digital Platforms
Slovenia has introduced VAT rules specifically governing short-term rental services provided through digital platforms. The regulations address how VAT obligations apply to accommodation rentals facilitated via online marketplaces, likely establishing deemed supplier rules or compliance requirements for both platform operators…
Chile: Digital content income reporting from 2027
Chile is introducing mandatory income reporting requirements for digital content creators starting in 2027. The new rules will require platforms and/or creators to report income earned from digital content activities to Chilean tax authorities. This regulatory update reflects a broader…
Republic of the Congo VAT Rules for Digital Services from July 2026
The Republic of the Congo will introduce VAT obligations for non-resident digital service providers and online marketplaces from 1 July 2026. Foreign businesses supplying digital services to Congolese consumers will be required to register for VAT, broadening the country's indirect…
IMF: Taxing Cross-Border Services
The IMF has published analysis on the challenges of taxing cross-border services, a growing area of concern as digital trade and service exports expand globally. The paper examines how existing international tax frameworks struggle to allocate taxing rights over services…
Chile Requires Platforms to Report Transactions by Users Claiming No Tax-Registration Obligation
Chile has introduced a requirement compelling digital platforms to report transaction data on behalf of users who claim they have no obligation to register for tax purposes. This measure targets individuals and businesses using platforms to generate income while asserting…
Illinois Digital Asset Tax Act Draws Scrutiny as Repeal Effort Emerges
Illinois enacted the Digital Asset Tax Act, which has attracted significant scrutiny from industry participants and lawmakers alike. A repeal effort has emerged in response to concerns about the law's implications for businesses dealing in digital assets. The act introduces…
Malaysia increases SST rate as of 1 March 2024
Malaysia raised its Sales Tax and Service Tax (SST) rate from 6% to 8% effective 1 March 2024, applying to most taxable services including digital services supplied by non-resident foreign service providers. The increase represents a significant adjustment to Malaysia's…
Fonoa: Challenges for Digital Platform Operators as DAC7 Looms
With DAC7 reporting obligations coming into force in the EU, digital platform operators face significant compliance challenges around data collection, validation, and reporting of seller information to tax authorities. The article outlines practical steps platforms should take to meet DAC7…
Maldives Bill Targets Foreign Tourism Platforms with New GST Rules
The Maldives is advancing legislation to impose GST obligations on foreign digital platforms involved in tourism-related services, such as international booking and accommodation platforms. The proposed bill would require non-resident platforms facilitating tourist bookings to register for and collect GST…
Brazil Enacts Mercosur Electronic Commerce Agreement
Brazil has enacted the Mercosur Electronic Commerce Agreement, establishing a regional framework for digital trade among Mercosur member states. The agreement has significant tax implications, particularly for VAT/GST and digital services taxation on cross-border electronic transactions. It sets out rules…
Panama Drops Tax Proposal for Foreign Digital Service Providers
Panama has withdrawn a legislative proposal that would have imposed tax obligations on foreign digital service providers supplying services to Panamanian consumers. The scrapped measure had been expected to introduce VAT or a similar levy on cross-border digital services, in…
Australia Imposes Digital Advertising Levy to Push Tech Deals with Local News
Australia has introduced a digital advertising levy targeting major technology platforms, designed to pressure them into striking commercial deals with local news publishers. The levy functions as a financial mechanism to redistribute revenue from digital advertising toward domestic journalism. This…
US Maryland Digital Advertising Tax Struck Down: Tax Court Ruling Explained
A US Tax Court has struck down Maryland's Digital Advertising Tax, which had imposed levies of 2.5% to 10% on annual digital advertising revenues generated within the state. The ruling is significant for tech companies and digital advertisers operating in…
Testimony: Legislative Proposal to Adapt the Income Tax Code to the Digital Economy Repeats the Economic and Legal Mistakes of Digital Services Taxes
The Tax Foundation has submitted testimony criticizing Belgium's legislative proposal to adapt its income tax code to the digital economy, arguing it repeats the economic and legal errors characteristic of Digital Services Taxes. The testimony contends that singling out digital…
Australia Introduces 2.75% Digital Advertising Levy
Australia is introducing a 2.75% digital advertising levy targeting large digital platforms, forming part of the News Media Bargaining framework. The levy applies to revenue generated from digital advertising by major technology companies operating in Australia, representing a significant policy…
TIME: Polcz and Jeremy Bearer-Friend, “An AI Tax Could Be the Great Equalizer America Needs”
Academic authors Polcz and Jeremy Bearer-Friend argue in TIME magazine that a tax on artificial intelligence could serve as an equalizing mechanism in the United States economy. The proposal frames an AI tax as a policy tool to redistribute gains…
Maryland Digital Advertising Ruling Shouldn’t Stop Other States from Considering Ad Taxes
A policy commentary responding to a Maryland court ruling against the state's digital advertising tax, arguing that the ruling should not deter other states from pursuing similar ad tax regimes. The piece examines the legal and constitutional issues raised in…
Azerbaijan Introduces 18% VAT on Digital Advertising Services from September 2026
Azerbaijan is introducing an 18% VAT on digital advertising services from September 2026, with Meta confirmed to apply this tax to Facebook advertising purchases by Azerbaijani customers. This marks a significant expansion of Azerbaijan's VAT regime to cover foreign-supplied digital…