Britain has now joined France in considering taxing sales for internet companies.
The way the information is being positioned, Britain would impose a 2% ‘tax’ on the revenues of search engines, social media platforms, and online marketplaces that “derive value” from users in Europe – or specifically the UK in this case. There’s still so much more we need to understand about this proposed legislation. What specific type of tax will it be? Use tax? Sales tax? Because the implications are significant depending on how it’s being perceived.
There are also a host of questions about how it’s enforceable, how companies will need (or be able to) track where specific sales or activity is coming from (to know what to pay on), etc.
Source: Armada Corporate Intelligence