How do digital services taxes work?

Digital services taxes (DSTs) are taxes imposed on digital services and digital products. They are levied at a higher rate than traditional taxes, with the purpose of generating revenue for state or local governments. In Indiana, DSTs are imposed by the state government on digital services, such as streaming services, internet gaming, online advertising, and electronic commerce. The rate of the tax varies, based on the type of service or product being taxed. DSTs are different from traditional taxes because they tax the services of digital companies, instead of taxing the company itself. This means that an individual consumer pays the tax, rather than the company that is providing the service or product. The revenue generated from DSTs in Indiana is used to fund government programs and initiatives, as well as support public services. The revenue can also be used to promote economic development in the state. Overall, DSTs are an effective way for state or local governments to generate revenue from digital services. Not only do they generate revenue, but they also ensure that consumers cover the costs of digital services and products.

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How do digital services taxes work?

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