Finance Act 2020

50 Relief for certain cross-border transactions

(1) This section applies if a claim under this section in respect of an accounting period has been included in the group’s DST return for that period (whether as originally made or by amendment).

(2) For the purposes of step 1 in section 47(3) or 48(4), disregard 50% of any UK digital services revenues arising to a member of the group in the accounting period in connection with a relevant cross-border transaction.

(3) For the purposes of step 4 in section 48(4), disregard 50% of any relevant operating expenses of a member of the group recognised in the accounting period that result from a relevant cross-border transaction.

(4) “Relevant cross-border transaction” means a marketplace transaction where—

(a) the online marketplace is provided by a member of the group,

(b) a foreign user is a party to the transaction, and

(c) all or part of any revenues arising to a member of the group in connection with the transaction are (or would be) subject to a foreign DST charge.

(5) In this section—

• “foreign user” means a user who it is reasonable to assume—

  (a)

  in the case of an individual, is normally in a territory outside the United Kingdom;

  (b)

  in any other case, is established in a territory outside the United Kingdom,

  and a reference to the foreign user’s “territory” is to be read accordingly;

• “foreign DST charge” means a charge (known by any name) under the law of the foreign user’s territory which is similar to digital services tax;

• “marketplace transaction” has the meaning given by section 41;

• “relevant operating expenses” has the meaning given by section 49.