Check if you need to register for Digital Services Tax
Find out if you need to register for the tax if your group provides a social media platform, search engine or online marketplace to UK users.
Digital Services Tax is a 2% tax on the revenues derived from UK users of social media platforms, search engines and online marketplaces.
Digital Services Tax applies to revenue earned from 1 April 2020.
Who should register
You need to register for the Digital Services Tax service if your business provides a social media platform, search engine or online marketplace to UK users and these digital services activities generate both:
- global revenues of more than £500 million in a year
- UK revenues of more than £25 million in a year
Digital Services Tax applies at group level. The revenues from all the businesses in a group will contribute towards these thresholds.
You can find out more about these in the Digital Services Tax manual.
A responsible member for the group must register on behalf of all the companies in the group. If the group does not choose a responsible member, the ultimate parent company of the group will be the responsible member.
Social media platforms
Digital Services Tax applies to social media platforms which both:
- promote interaction between users
- have user content as a significant feature of the service
Examples of social media platforms include:
- social or professional networks
- blogging or discussion platforms
- video or image sharing platforms
- dating platforms
- review platforms
Search engines
Digital Services Tax applies to internet search engines. This does not include internal website search engines.
Online marketplaces
Digital Services Tax applies to online marketplaces that facilitate the sale of goods and services offered by third party users.
This does not include online marketplaces that sell financial services.
UK users
A UK user is either:
- an individual that is normally located in the UK
- a business established in the UK
This may be different to where the user is located at the time of the transaction.
You should use the evidence available to you to determine if it is likely that a user is normally located or established in the UK.
Sources of evidence can include:
- delivery address
- payment details
- IP address
- intended destination of advertising based on contractual evidence
- the location of property or goods rented out
If you have conflicting evidence about the user’s location, you should consider which evidence is most appropriate to determine where the user is normally located.
When and how to register
Find out when and how you need to register for the Digital Services Tax.
If you have a question that is not covered by this guidance, contact dst.mailbox@hmrc.gov.uk.