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France goes ahead with digital service tax

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US expected to respond with tariffs on French goods

France’s demand for millions of pounds from US tech companies signals the end of the truce on digital service taxes, reports The Financial Times. It had been hoped that an international framework for the tax would emerge from discussions at the OECD. However, the US, which has long argued that digital taxes represented an unfair trade practice, suspended the discussions in June, and it appears that the French authorities have lost patience. According to the paper, a French official said ‘we can’t wait any longer and the tech companies are the big winners of the pandemic’. US opposition to countries imposing their own digital tax is described as ‘bipartisan’, and the US trade office is expected to introduce tariffs on French goods worth 1.3 billion euros of as a result of the move.

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US expected to respond with tariffs on French goods

Europe, Americas
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