The consultation, launched by the Treasury on Friday, looks at how the tax could be managed and implemented, as well as the impact it will have on consumers and businesses.

As part of the consultation, which will run until 20 May 2022, businesses will be asked for their views on how the online sales tax should be designed and implemented.

This includes which goods and services would be covered by the tax, whether it will be charged as a flat fee based on the number of the transactions, or deliveries or if it will be a revenue-based tax, and if it will also extend to ‘remote’ sales made by phone or post.

It will also clarify the tax status of click-and-collect purchases, what the territorial scope of that tax will be, whether exceptions and thresholds would be appropriate, and how the online sales tax would be reported to HMRC.