BKNG · 10-Q · 2026Q2 · Full report

Digital Services Tax Regulation

Booking Holdings Inc. · 2026-08-04 · Importance 32 · Surprise 24

Several jurisdictions, particularly in the European Union, have adopted or are considering digital services taxes on revenue from digital advertising or online platforms even without a local physical presence. Applicable rates range from 1.5% to 10% of revenues deemed generated in the relevant jurisdiction, with Booking Holdings recording these taxes in Sales and other expenses. Canada repealed its digital services taxes in March 2026, producing a $31 million benefit related to prior years; the Company also remains exposed to U.S. tax effects from the One Big Beautiful Bill Act, including 2026 interest-expense limitation rules and additional foreign tax credits.

Key facts

• Sales and other expenses as a percentage of total revenues decreased year-over-year for the six months ended June 30, 2026 primarily due to efficiencies in third-party customer service costs and a benefit of $31 million resulting from the March 2026 repeal of Canadian digital services taxes related to prior years. source
• Some digital services tax rates range from 1.5% to 10% of revenues deemed generated in the jurisdiction. source