D2.805 Digital services tax—compliance and reporting
The payment of digital services tax (DST) must be made within nine months and one day from the end of each accounting period and reporting is by reference to accounting periods1.
A group's first accounting period for DST begins with 1 April 2020 and ends with the first group accounting reference date to occur after 1 April 2020, with a backstop of 31 March 2021 to ensure each period is 12 months or less. DST accounting periods are then defined to run to each 12 month period, or a group accounting reference date change, whichever is the earlier. For the most part this should ensure that DST periods match group consolidated accounting periods2.
As stated, accounting dates are defined by reference to the group's consolidated accounts or the parent's accounts in a solus entity situation. The 12 month backstop may mean that in an exceptional case the DST accounting period does not match group consolidated accounting reference dates. Where this is the case, a daily apportionment of revenues and expenses is required to compare data to that required for DST3.
There may also be discrepancies between DST periods and UK tax periods if accounts of subsidiary UK companies do not have a matching reference date to group accounts.
For DST purposes, revenues and expenses that are recognised in any period should be calculated by reference to accounting standards. There is a requirement to use an applicable accounting standard as used at group level4. Presently the