The European Commission has launched a public consultation on how the EU can ensure that the digital economy is taxed in a fair and growth-friendly way, arguing that the current tax framework cannot capture activities which are increasingly based on intangible assets and data
Pierre Moscovici, commissioner for economic and financial affairs, taxation and customs, said: ‘Nobody can deny it: our tax framework does not fit anymore with the development of the digital economy or with new business models. Member states want to tax the huge profits generated by digital economic activity in their country. We need a solution at EU level, bringing robust solutions for businesses and investors in the single market.’
The consultation follows on from a meeting of the leaders of the European Council, which called for ‘an effective and fair taxation system fit for the digital era’, and said this should be in line with global initiatives such as the OECD’s work in order to ensure a level-playing field. The Commission is charged with producing proposals by early 2018.
The Commission says it is particularly interested in gathering views on the main problems related to taxing the digital economy, for member states and business. It also asks for feedback on possible solutions to these problems - both targeted, temporary measures and comprehensive long-term solutions.
The public consultation will feed into the work underway on the digital taxation proposals for next year and runs until 3 January 2018.
Consultation, Fair taxation of the digital economy is here.
Report by Pat Sweet
