PART 2Digital services tax

Charge to tax

50Relief 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this section in respect of an accounting period has been included in the group's DST return for that period (whether as originally made or by amendment).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—

    1. a

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

    2. 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.