European Commission opens the floor for feedback on creation of an EU digital levy
On 18 January, the European Commission launched a public consultation on a new digital levy. This initiative aims to ensure fair taxation in the digital economy, while at the same time contributing to Europe’s recovery.
Tax systems have been lagging behind global technological developments over the past number of years. This has resulted in digital companies paying much less tax than they should. The COVID-19 crisis has also exacerbated this situation as it has accelerated the transition towards a more digital world and boosted profits and revenues for many online companies. The digital levy would help to ensure that EU rules are fit for purpose in the digital economy and that companies, whether digital or not, compete in Europe on fair terms, and in doing so contribute to the recovery.