The EU plans to move forward with a bloc-wide tax on digital services offered by companies like Google and Amazon if a global deal to rewrite the rules for cross-border taxation is not not concluded by mid-2021.
Efforts by the Organization for Economic Co-operation and Development (OECD) to update the rules for the digital age have stalled this year. Donald Trump’s administration hesitated at the prospect of signing a multilateral agreement shortly before the presidential election.
EU heads of state and government are due to look into the situation in March and decide on the way forward for the bloc, the French finance ministry source said.
“Obviously, March was not chosen by chance. March will be two months after Biden takes office… We hope to have contacts in these two months with the new American administration, ”said the source.
“Based on what the Biden administration says, the European Council – this is at the level of EU heads of state and government – will give guidance in March,” the source added.
France is pushing its European partners to prepare a European digital tax at the beginning of 2021 that could be quickly applied in the event that negotiations at the OECD fail again by the middle of the year.
Paris has its own national digital tax, but is committed to removing it as soon as there is an international agreement. He suspended the levy this year until December while negotiations at the OECD were underway.
(Reporting by Leigh Thomas, editing by Larry King)