On 23 November 2022, the National Audit Office (NAO) published a report on its investigation into UK Digital Services Tax (DST). The report examines HMRC’s implementation of DST and its operation in its first year. The findings highlight that HMRC received much more in DST receipts than was initially forecast – actual receipts were £358 million compared to the estimated £275 million. There were several reasons for this, including groups paying more DST than expected, groups paying DST that HMRC had not initially identified as in scope, and businesses not seeking to reduce or remove their DST liability within the law as HMRC had expected that they might. In this article we look at the NAO’s findings including in relation to what might happen next, as DST is replaced by Pillar One.
Source: KPMG
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