The Travel Technology Association (Travel Tech), a non-profit organization supporting the travel technology industry, has submitted a letter to the U.S. Trade Representative, Jamieson Greer, expressing concerns over the global Digital Services Taxes (DSTs). The letter was written in response to a request for comments within President Trump’s Memorandum issued on February 21, 2025, about protecting American businesses and innovators from overseas exploitation and unfair penalties.
Travel Tech asserts that DSTs imposed by some foreign jurisdictions are discriminatory and non-reciprocal. These taxes are levied on marketplace activity, not direct sales to customers, leading to an unequal tax burden on U.S.-based travel comparison platforms. The association argues that this tax structure distorts competition, impedes growth, and escalates costs for travelers.
Travel Tech’s member companies collectively connect millions of travelers to vast numbers of travel service providers worldwide. They aid in selling time-sensitive commodities like hotel rooms or airline tickets. Despite offering the same products, DSTs are exclusively imposed on travel comparison platforms, not the travel service providers. According to Laura Chadwick, President & CEO of Travel Tech, this jeopardizes the transparency and competition that Travel Tech members provide to travelers.
The association’s letter further outlines their concerns about DSTs, which range from double taxation and compliance difficulties to financial strain, lost revenue, and missed opportunities for American innovation.
Previously, Travel Tech has communicated its concerns about the impact of global DSTs on travel technology companies to the Trump Administration. It has also made representations to the former U.S. Trade Representative about Canada’s DST tax. This latest letter to U.S. Trade Representative Jamieson Greer underlines the association’s ongoing commitment to addressing the issues surrounding digital services taxation and its impact on the U.S. travel industry.
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