How do digital services taxes work?
Digital services taxes (DSTs) are taxes levied on digital services provided by online and tech companies. These taxes are enacted in certain countries and regions to help offset the negative effects of digital services, such as the avoidance of taxation by companies that are not physically located in the area. In Utah, there are several different types of digital services taxes. The primary type in Utah is the Digital Goods and Services Tax (DGST), which is applicable to all digital services, such as streaming, downloads, or any service that is sold digitally. It is mainly concerned with consumer-facing digital services, such as streaming services and electronic stores. The DGST is collected from the consumer when the digital service is purchased. It is either collected directly or through its provider, who is responsible for the collection and remittance of the tax. The amount of the tax is based on the total amount of the purchase, and it is the same regardless of the location of the provider. In addition to the DGST, Utah also has a digital services tax for the sale of advertising services. This tax is assessed on the cost of the advertising, and it is collected from the advertiser, not the consumer. This tax is intended to help the state recuperate some of the revenue it has lost from the sale of digital services that have been avoided due to physical location. Overall, digital services taxes are taxes imposed on digital services sold in Utah. They are collected from the consumer or the advertiser, and they are intended to help recover some of the sales tax that has been avoided due to the physical location of the provider.
Related FAQs
What is the role of Transfer Pricing for taxation of international profits?What are the different forms of taxation for capital gains?
How do governments apply double tax treaties?
What is the role of the Organisation for Economic Co-operation and Development (OECD)?
What is the role of the USA's Foreign Account Tax Compliance Act (FATCA)?
What is a Permanent Establishment (PE) and how is it taxed?
How do governments apply transfer pricing rules?
What is the taxation of foreign trusts?
How do governments combat tax avoidance by multinational corporations?
How do international taxation rules change with new technology and services?
Related Blog Posts
An Overview of International Tax Law: What You Need to Know - July 31, 2023Key Principles of International Tax Law - August 7, 2023
Learn About the Basics of Cross-Border Tax Cooperation - August 14, 2023
Understanding the Double Taxation Principle and How It Affects Businesses - August 21, 2023
A Guide to International Tax Planning Strategies - August 28, 2023