3% “Digital Taxation” Will be Introduced by the EU

The European Union will introduce a 3% tax on the profit from Internet goods and services as well as from advertisements on social media.

The new tax is supposed to be paid in the country in which these goods or services are delivered.

The Commissioner for Economic and Financial Affairs, Taxation and Customs Pierre Moscovici pointed out that the digital tax would be beneficial to all Europeans and is not a reciprocal measure against the imposing of duty on aluminium and steel by the United States.

“Everyone should understand that this is not an anti-American tax. This is a tax that is needed and will benefit all Europeans wherever they live. It will not hit the economy in the single market where there are 500 million consumers. Let's start this debate positively and show the political will to adopt the digital economy tax. Be sure that the European Commission and I personally have the political will. When there is political will, there is a way too”, commented Moscovici.

The taxation of profits from digital goods and services is subject to discussion among European finance ministers in Sofia. This is considered to be one of the major tax reforms that are going to happen in the European Union. This reform is extremely important for multinational companies like Google, Amazon and Facebook.

The motivation behind it is the profit shifting often done by corporations meaning that European bodies don't receive much tax from the sale of these services in their countries.

Bilyana Ninova

Bilyana Ninova is a Marketing specialist, content creator and hobby photographer.

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