Our government is now consulting with interested parties to explore the arguments for and against an Online Sales Tax (OST).
The OST is being considered as a way to level the retail playing field by taxing online retailers and using the funding to reduce the impact of rates on high street shopping outlets.
As part of the three-month consultation stakeholders will be asked for their views on the challenges on the design of an OST, including which products and services would be in scope and whether it would be a flat-fee tax based on the number of transactions or deliveries, or a revenue-based tax.
The consultation delves into what effect an Online Sales Tax would have on consumers and businesses alike, which will also be a key determining factor in policy decisions.
The consultation will run from 25 February to 20 May 2022.