The US – EU Dispute Over Digital Services Taxes | Econofact

I. What Are Digital Services Taxes? DSTs are taxes on the gross revenue, such as from advertising and data sales, that certain large and highly profitable digital companies earn from consumers through websites that offer the likes of search engines, social media services, and online marketplaces.  These taxes are imposed without regard to the targeted companies’ physical presence in the taxing country. This distinguishes DSTs from conventional corporate income taxes, which generally require the physical presence of an in-country permanent establishment.  State of Digital Services Taxes in Europe Jurisdiction Status and Effective Date  Rate Scope EU DIGITAL LEVY Proposed (stalled) 3% Marketplaces; advertising AUSTRIA Enacted; Jan. 2020 5% Advertising BELGIUM Proposed; Expected 2027 3% Advertising; intermediation; data transmission CZECH REPUBLIC Proposed (stalled) 5% Advertising; digital services DENMARK Enacted; Jan. 2024 2% Streaming video FRANCE Enacted; Jan. 2019 3% Advertising; digital interfaces; user data Enacted; Jan. 2024 1.2% Streaming video HUNGARY Enacted; July 2017 7.5% Media content; advertising ITALY Enacted; Jan. 2020 3% Advertising; digital interfaces; user data NORWAY Announced Norway may introduce a DST if no OECD/G20 agreement POLAND Enacted; July 2020 1.5% Streaming video Proposed 7% Digital services PORTUGAL Enacted; Feb. 2021 4% Streaming video SLOVENIA Proposed   Advertising;
Read More