Digital services tax (DST) tracking

Description

Digital services tax tracking is the revenue-side compliance function that has emerged as DSTs have proliferated across the UK (2 percent), France (3 percent), Italy, Spain, Austria, Turkey, Canada (since 2024), and India's equalisation levy, with the OECD Pillar One process formally aiming to consolidate these but, as of 2026, not yet displacing any of them. Each DST has its own scope (which revenue streams qualify), its own thresholds (group revenue plus in-country revenue), its own filing cadence, and its own definition of "digital services" that does not always line up with the operator's revenue categorization. A working tracking program has three pieces: revenue categorization that maps the operator's accounting categories to each DST's scope definition (with the categorization typically requiring tax-counsel input rather than just bookkeeping), threshold monitoring that flags when in-country revenue is approaching the registration trigger (filings have lookback rules, so detection close to the threshold is materially more expensive than detection well above it), and filing and remittance per jurisdiction. DSTs are typically not creditable against home-country corporate income tax, so the cost is genuinely additional rather than offset; budget impact tends to be larger than first-pass estimates by tax planners assume.

Applicability

Applies when: markets include UK, EU, france, india, or turkey.

How predicates are evaluated

Required by (7 regulations)

• UK DST

  Finance Act 2020 Sections 39, 41, 47 + Schedule 8 — 2% UK DST on UK-derived digital services revenue; £500M global + £25M UK group-consolidated thresholds; £25M annual UK allowance.

  Finance Act 2020 Sections 39, 41, 47 + Schedule 8

• France DST

  Loi n° 2019-759 — 3% France DST on France-derived digital services revenue; €750M global + €25M French group-consolidated thresholds; quarterly advance payments + annual return.

  Loi n° 2019-759

• Italy DST

  Legge 160/2019 art. 1 commi 35-50 — 3% Italy DST on Italian digital services revenue; €750M global + €5.5M Italian group-consolidated thresholds.

  Legge 160/2019 art. 1 commi 35-50

• Spain DST

  Ley 4/2020 IDSD — 3% Spain DST on Spanish digital services revenue; €750M global + €3M Spanish group-consolidated thresholds; quarterly return cadence.

  Ley 4/2020 IDSD

• Austria DST

  Digitalsteuergesetz 2020 — 5% Austria Digital Advertising Tax on Austrian-derived online advertising revenue; €750M global + €25M Austrian group-consolidated thresholds; monthly return cadence.

  Digitalsteuergesetz 2020

• Türkiye DST

  Law No. 7194 (Türkiye) — 7.5% Türkiye DST on Türkiye-derived digital services revenue; group-consolidated thresholds (€750M global + TRY 20M national); monthly return cadence via Türkiye Revenue Administration.

  Law No. 7194 (Türkiye)

• Canada DST

  Digital Services Tax Act (Canada) S.C. 2024 c.17 s.96 — 3% Canada DST on Canadian-source digital services revenue; group-consolidated thresholds (€750M / CAD 1.1B global + CAD 20M Canadian); annual return by 30 June; retroactive to 2022.

  Digital Services Tax Act (Canada) S.C. 2024 c.17 s.96

Fulfilled by (2)

• avalara · partial · medium effort · $$$
• In-house build · medium effort

ClearLaunch does not accept payment from vendors. Methodology.

Evidence formats

• DST revenue ledger
• DST returns