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The European Commission’s ‘digital levy’

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International tax eyes are focused on the new US administration and what impetus that might deliver to the OECD/G20 proposals for addressing tax challenges arising from digitalisation. Simultaneously, the European Commission, spurred by the need to raise own resources to finance the covid-19 recovery effort, seems not to be convinced that international consensus will happen soon enough. A consultation process is underway, looking into possible new forms of EU digital taxation to seek a fairer contribution from companies operating in the digital sphere – but without interfering with the ongoing work at OECD/G20 level.

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