The Digital Service Tax will be introduced on 1 January 2020 at the rate of 6%.
Digital service is defined as any service that is delivered or subscribed over the internet or other electronic network and which cannot be obtained without the use of information technology and where the delivery of the service is essentially automated.
Some of the examples of digital transactions are:
- subscription fees paid to Netflix, Spotify, iCloud storage etc,
- Digital advertising in Google and Facebook.