A walk through if the Income Tax (Digital Services Tax) Draft Regulations, 2020.

A digital marketplace was defined in the Finance Act of 2019 as a platform that enables the direct interaction between buyers and sellers of goods and services through electronic means. This definition covers all types of marketplaces however the challenge is that in some instances despite buyers and sellers meeting through a particular platform no value is transferred for goods and services through the platform an example here is a Facebook page or group where buyers and sellers meet but payments are made through private arrangements. However, Facebook would be liable to pay digital services tax for advertising revenue it generates or if payments for goods and services were made within the platform.