|Author (Corporate)||European Commission|
|Series Details||COM (2018) 148|
Proposal for a Directive adopted by the European Commission in March 2018, which establishes a common system of a digital services tax ('DST') on the revenues resulting from the provision of certain digital services.
This proposal aims at taxing revenues created by certain digital activities that remained untaxed. Revenues falling within the scope of the proposal are revenues created from selling online advertising space, from digital intermediary activities between users for facilitating the sale of goods and services and from the sale of data generated from the user-provider information. The Directive would only apply to companies with the total worldwide revenues above €750 million and revenues in the EU of €50 million.
The proposal was built as an interim measure until a comprehensibe reform could be implemented on a EU level. It aimed at avoiding unilateral measures to tax digital activities in certain Member States, which could in turn lead to a patchwork of national responses with the potential of damaging the Single Market.
The proposal was adopted by the European Commission on 21 March 2018, as part of a package of measures on taxation standards for the digital economy. It required unanimity in the Council of the European Union for its adoption, following consultation of the European Parliament. The latter approved its position on this proposal on 13 December. The Council carried on with its discussions and remained unable to reach an agreement over the content of the proposal.
|Subject Tags||Digital Economy, Digital Single Market [DSM]|
|International Organisations||European Union [EU]|