A tax storm is brewing! Recent reports suggest the US is considering slapping 25% tariffs on British exports in retaliation for the UK’s digital services tax, which has had a significant impact on American tech giants including Google, Amazon, Facebook and eBay.
The UK imposed a 2% digital services tax in 2020 – and is far from the only country to have taken steps to capitalise on taxing companies generating huge sums from online sales and activities.
If the Biden administration confirms the tariffs on British exports to the US – of which the most popular include clothing, footwear, ceramics and furniture – it is expected to raise about $325 million; approximately the amount the UK’s digital services tax is likely to generate from the largest US digital organisations.
Source Innovate tax
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