Digital Tax

Taxes levied on digital services or digital business models.

Digital tax refers to taxes designed to capture value created through digital services and online business models (e.g., platforms, advertising, marketplaces). These rules often focus on where users are located and where digital value is generated, and may require additional reporting and data retention.

- Used when computing taxes, preparing returns, and documenting tax positions.
- Used to evaluate transaction tax impact and ensure compliance (VAT/GST/Corporate Tax).

- Example: The tax team applies **Digital Tax** to determine the correct tax treatment and to support the filing.

- Why it matters: Reduces compliance risk, helps avoid penalties, and supports consistent tax reporting and defensible positions.