Digital Economy Taxation: open consultation launched

Until January 2018, you have the opportunity to participate in the public consultation launched by the EU Commission on the taxation of digital economy. The open web tax consultation aims to define a digital economy tax approach that will ensure a more equitable and effective taxation system in support of public revenue, growth and competitiveness of the EU through the single digital market.

Contributions to the consultation – available until January 3, 2018 – are welcomed from all EU citizens, businesses and organizations interested in the evolution of the digital economy, together with the tax administrations of various countries, international experts and relevant stakeholders.

To participate in the consultation, you shall answer a questionnaire, currently available in English but soon accessible in all EU official languages, lasting about 20 minutes.

The consultation is structured as follows:

  • introduction;
  • general information on the digital economy;
  • basic information about the respondent;
  • current international tax framework and its shortcomings. The section has two subpages, one which includes general questions suitable for all types of respondents and a second with more specific questions requiring a thorough knowledge of the current international tax framework.
  • possible solutions to address these shortcomings.
  • two sub-sections: one with general questions suitable for all types of interviewees, the other with more specific questions requiring a thorough knowledge of the current international tax framework;
  • upload page to submit a position paper or any type of document considered relevant to better explain personal views.

The goal is to find a system that would allow proper fiscal taxation against the big web-based enterprises, which today in many cases still pay irrelevant figures over their business volumes from various member states. “Our fiscal framework is no longer suitable for the development of the digital economy and new business models,” says European Commissioner for Economic Affairs, Pierre Moscovici, remarking that “no one can deny” this fact.

The Member States, which have called for a Commission initiative last October 19th, “want to tax the enormous profits generated by the digital economy in their countries“, continues Moscovici, and that is why “we need a solution at Union level European. ” The Commission intends to evaluate any type of proposal, whether it relates to targeted measures, temporary or broader and long-term solutions.