US President Donald Trump. Foto: Shutterstock
This isn’t the first time Trump has attacked the UK’s digital services tax. His predecessor Joe Biden did not agree with him either.
Asked how high the retaliatory levy would be, Trump said: “higher than what they’re getting” from this levy.
What is a digital services tax?
The UK introduced theDigital Services Tax (DST) on April 1, 2020, imposing a 2% levy on revenues from social media, search engines and online marketplaces.
It applies to companies whose global digital revenues exceed £500 million (€576 million), with more than £25 million (€28.75 million) attributable to UK users.
The tax generated €1.1 billion in revenue
The tax brought in £944 million (€1.1 billion) from technology companies in the 2025-26 financial year, up 17% from a year earlier, according to UK HM Revenue & Customs.
The DSTwas originally introduced as a temporary measure pending an international agreement to reform the global tax system, but such an agreement was never reached.
The UK government promises to repeal it as soon as such an agreement is agreed.
Where else do similar taxes apply?
A number of European countries have also introduced a Digital Services Tax (DST). It is in place in France, Spain, Italy, Austria, Denmark, Hungary, Poland and Portugal.
Outside the EU, Switzerland and Turkey have introduced similar taxes.
The EU also has theDigital Markets Act, which regulates the activities of major companies to ensure fair competition and prevent anti-competitive practices in the digital market.
