Taxation of Digital Services

Taxation of digital services involves governments collecting taxes on online activities like streaming, cloud computing, and digital advertising. Since these services cross borders easily, countries impose digital taxes to ensure fair revenue collection from global digital providers. Typically, these taxes are based on where the service is used or where the company is headquartered. They aim to prevent tax evasion and ensure digital companies contribute fairly to public finances, similar to traditional businesses. As digital services grow, tax rules evolve to keep pace, promoting fair competition and sustainable public services.