Global solutions are especially pressing when it comes to digital services taxes (DSTs). Many travelers book transport, accommodations or other travel services outside of their country of residence. When both the traveler’s country and the destination country have DSTs, this can easily result in double taxation. Since these taxes are not levied on profits, but on revenue, they cut directly into travel tech companies’ already low profit margins.
That is why Global Travel Tech supports the OECD’s so-called Pillar One solution on the reallocation of taxing rights. We call on governments to show commitment to finalizing this process and the ambition to ensure a swift implementation across the globe, which would allow for the repeal of existing digital services taxation schemes.