How do digital services taxes work? by Gary Clyde Hufbauer and Megan Hogan published by PIIE (2/2022).
“The digitalization of economies and cross-border trade have posed new challenges to policymakers trying to tax company profits. The existing international tax system was designed in the age of brick-and-mortar commerce and only allows governments to tax firms with a physical presence in their country. To expand their tax bases, many countries, including France, Britain, and Italy, have proposed digital services taxes (DSTs) that tax companies based on their digital presence as well…”
