Subject: Re: Tradee talks with 51st state die
I decided to let an AI put together a definition of Digital Serices Tax:

A Digital Services Tax (DST) is a tax levied on the gross revenues of companies, particularly large multinational digital businesses, that derive revenue from the provision of digital services to users in a specific jurisdiction. It's essentially a tax on the total amount a business earns before deducting expenses, based on specific digital activities within a country's borders.
Here's how it generally works:
1. Targeting Specific Digital Services:
DSTs target specific digital services that generate revenue in a particular country, such as online advertising, digital marketplaces, the sale of user data, and the provision of digital interfaces.
Some countries have broadened the scope of their DSTs to include activities like streaming services, e-commerce, and software-as-a-service (SaaS).
2. Gross Revenue Basis:
Unlike traditional corporate income taxes which are based on profits, DSTs are typically levied on a company's gross revenues from the covered digital services within a specific jurisdiction. This means the tax is applied to the total revenue generated, regardless of whether the company made a profit.
3. Nexus and Revenue Thresholds:
DSTs often utilize revenue thresholds to determine which companies are subject to the tax.
These thresholds typically involve a combination of global revenue and a minimum amount of revenue generated within the taxing country's borders.
This approach is designed to capture the economic presence of digital companies even if they lack a physical presence in a country, addressing the challenge of taxing businesses that operate across borders without traditional brick-and-mortar establishments.
4. Calculation and Payment:
Once a company meets the revenue thresholds, they calculate the portion of their gross revenues from the digital services provided to users in the taxing country.
The applicable DST rate is then applied to this calculated revenue, and the resulting tax is paid to the relevant tax authority.
5. Distinction from Other Taxes:
It's important to note that DSTs are distinct from income taxes, online sales taxes, and Value-Added Taxes (VATs).
They are a form of gross revenue tax specifically designed to address the challenges of taxing the digital economy and ensuring that large digital companies contribute to the tax base in countries where they generate significant revenue.
In summary, a Digital Services Tax is a tax on the income generated from specific digital services provided within a country's borders, aimed at addressing the challenges of taxing digital companies that operate globally without a traditional physical presence.

Jeff