Download the full outcome
Detail of outcome
As an outcome of the Business Rates Review, on 25 February 2022 the government launched a consultation considering the case for an Online Sales Tax. The government reviewed the feedback it received from stakeholders over the consultation period and announced at the Autumn Statement 2022 its decision not to proceed with such a tax. This document summarises the views shared during the consultation process that informed the government’s conclusion that that an OST would be complex to design and risked creating unintended distortion or unfair outcomes between different business models.
This is an open consultation, exploring the proposal for an online sales tax (OST) as a means to rebalance the taxation of the retail sector between online and in-store retail. Questions exist over many areas of any potential OST. These include the different forms an OST could take and how to define an online sale reflecting the range of transaction, delivery, and collection options.
This consultation explores these issues and the potential impacts of an OST to help the government assess the case for and against implementing such a tax.
Stakeholders can submit views by email to: OSTconsultation@hmtreasury.gov.uk or by post to: Corporate Tax Team, 1 Yellow, HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ. Otherwise, stakeholders can download and use the response form available below to submit views.