Recommendation 13

Legislative decisions, implementation decisions and the operation of compliance regimes for Pillars One and Two will be carried out in line with agreed conventions. As previously stated, the OECD’s Pillar One is due to supersede the Digital Services Tax in 2024, and HM Treasury is keen for this to happen as quickly as possible.39 Pillar One would require new legislation, which would include the repeal of the Digital Services Tax.40 We asked what would happen if a multilateral consensus on implementation of the reforms was not achieved. The Departments explained that the legislation required a review of the Digital Services Tax in 2025, and there would be interest in what other countries were doing.41 What happens next would depend on whether the reforms were held up by a glitch or had fallen by the wayside completely, as the Digital Services Tax might not be sustainable in the long term.42