The Interaction between VAT and the Digital Services Tax Regime in Market Jurisdictions: Is the DST Filling the Gap Regarding the Taxation of the Digital Economy?

The Digital Service Tax (DST) aims to tax certain digital businesses within market jurisdictions, which, traditionally, collect revenue through consumption taxes. This article provides a pragmatic analysis of the levies applicable to digitalized businesses in the European Union arising from the interaction between the DST and value added tax (VAT). In doing so, it explores the legal elements of these levies and determines, from a practical perspective, which digitalized business models fall within their scope.