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Open Access. Powered by Scholars. Published by Universities.®

2019

The Peter A. Allard School of Law

Taxation-Transnational

Tariffs

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Full-Text Articles in Law

The Digital Services Tax On The Verge Of Implementation, Wei Cui Jan 2019

The Digital Services Tax On The Verge Of Implementation, Wei Cui

All Faculty Publications

France enacted the digital services tax (DST) in 2019, and similar legislation is pending in the United Kingdom, Spain, Italy, and other countries. The DST can be viewed as a tax on location-specific rent (LSR), and it arguably solves genuinely new problems in international taxation. The author briefly reviews this justification of the DST and further examines the DST design in light of three criticisms. The first criticism is that certain features of the DST render it similar to distortionary import tariffs. The second is that the DST would not be borne by digital platforms but would only be shifted …