The European Commission recently proposed new rules to ensure the fair taxation of digital business, placing the EU at the forefront in designing tax laws aimed at the modern digital economy. The Commission is seeking to instate an interim tax to generate immediate revenues for Member States from digital activities that are currently taxed ineffectively.
For companies with sufficient EU (€50 million) and (€750 million) global turnover, the tax would apply on revenues generated from digital activities. Examples of such activities include selling online advertising space, digital intermediary activities allowing users to buy and sell goods amongst each other, and sales of data generated from user-provided information.
The next steps for this proposal is submission to the Council for adoption and to the European Parliament for consultation.
