UK sets interest rates for over and under-paid Digital Services Tax

On September 16, 2020, the UK Government issued a Policy Paper setting out the interest rates for over and under payments of Digital Services Tax (DST) liabilities.

The interest rate applicable to the payment of a DST liability paid before its required due date will be the reference rate less 0.25%, or 0.5% if greater.

The interest rate applicable to the repayment of a DST liability that is overpaid on or after its required due date will be the reference rate less 1%, or 0.5% if greater.

The interest rate applicable when there is an underpayment of the DST liability will be the reference rate plus 2.5%.

The changes would come into force from October 14, 2020.

See Policy Paper