Brussels will postpone the publication of its digital tax proposal, which had been planned for July, and has confirmed that it will prioritise finalising a global tax accord. The Commission will seek to present the proposal for the digital levy later this year.

The US has recently urged the Commission to delay its proposal warning that it ‘threatens the work undertaken by the Organization for Economic Cooperation and Development (OECD) and G20 process,’ where global leaders have agreed on minimum taxation.

The EU’s announcement came after US Treasury secretary Janet Yellen arrived in Brussels for meetings with EU finance ministers and Commission officials. Yellen is expected to discuss the tax deal and lobby against the proposed EU digital levy.