Amazon and others face digital tax

Written by Mark Evans

With the release of two draft EU directives introducing an interim digital services tax, along with a proposal for a longer-term solution, EuroCommerce Director-General Christian Verschueren supported Commission efforts in seeking to prevent a confusing array of different national measures to try and ensure a level playing field between all business models.

“We have argued strongly for an effort to find workable solutions which suit all players – rather than fragmented national approaches which could undermine the Single Market. At the same time, we need to ensure that any EU approach avoids imposing further tax burdens on companies in our sector already paying heavily and operating on very tight margins.”

Technology firms could pay a 3 per cent tax on turnover for various online services, bringing in an estimated €5bn.

Verschueren stressed the need for this issue to be resolved in the long-term at international level, called for progress in the OECD and G20, and supported any EU initiative to contribute to a rapid global solution. He also warned that the Commission initiative must not create new tensions with the US and others, and increase the risk of reciprocal retaliation worldwide.