Britain has announced new measures to tackle tax avoidance by tech giants.
Chancellor Philip Hammond said some multinationals were avoiding tax on profits generated from selling to UK customers by using inter-group royalty payments to shift those profits into affiliates in low-tax jurisdictions.
Britain would impose a withholding tax on such payments that could raise around £200m a year, he said.
Hammond said he was targeting "digital businesses" but the description of the measure in his budget statement suggested they could cover all companies.
Hammond also said he would hold online marketplaces responsible for paying VAT when sellers on the platforms do not collect and pay the tax.
Up to £1 billion may be lost each year due to such tax evasion by sellers on eBay and Amazon alone, according to an April report by the UK's National Audit Office.
The new VAT measure is expected to raise around £30m a year.
