News: The EU Considering the Introduction of a Web Tax

EU authorities are considering the possibility of introducing a tax on digital services. Moreover, this can happen even if it is not possible to reach an agreement between the participants regarding the web tax. This became known from the statement of the head of the Ministry of Economy of the Eurozone Paolo Gentiloni, published on September 15.

Web tax is to be introduced for at the global level - G20. According to Gentiloni, this can be an extremely effective solution that will allow getting significant cash flow. For these purposes, the European Parliament has established a special commission that will work on a web tax draft until 2020. However, if all the features cannot be agreed upon, Gentiloni declared his readiness to propose his own project.

Some countries are already introducing new tax rates for large online businesses. For example, France has an additional tax of 3% for companies promoting services via the Internet. IT giants such as Amazon and Facebook are the taxpayers of this type. This requirement applies to companies whose world income is more than 750 million euros, and the income in France is from 25 million euros.

Law&Trust offers legal services for companies conducting online business in the EU countries. Our lawyers will advise you on the rules and requirements of doing business in the EU, as well as tell about the specifics of taxation in each country.