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Online retail tax policy consultation

The government is currently consulting on the policy considerations for an online sales tax (OST) to help "rebalance the retail sector". This is an early-stage consultation, designed to "test the arguments for and against an OST" and obtain views on the options for potential scope and design.  

Remember that, as online retail has boomed in the last two years, the government has also spent significant amounts supporting traditional bricks and mortar retail. The government is clear that any OST, if introduced, would be used to fund business rates reductions but could not generate enough to replace business rates altogether. 

If this issue is important to you and your business, you can have your say via The consultation closes on 20 May 2022 

Whilst we’ve made no decision on whether to introduce such a tax, it’s right that, given the growing consumer trend to shop online, we work with stakeholders to assess the appropriate taxation of the retail sector


retail, corporate tax, real estate, fashion and luxury, hospitality and leisure, covid-19, hospitality