04.28.22

Online sales tax for e-commerce

The UK Treasury is considering whether a 1% online sales tax needs to be applied on e-commerce goods and services.

The e-commerce trade has seen a radical increase – fuelled significantly by the Covid-19 pandemic- and it is no coincidence that the government is reviewing its fiscal measures at a time when e-commerce has grown exponentially over the past 2 years.

An open consultation to this effect has been launched from 25 February 2022 until 20 May 2022.

The proposal of the online sales tax aims to rebalance the taxation of the retail sector between online and in-store retail.

Information on the public consultation policy can be found via the following link.