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Vice president of the European Commission: EU remains committed to resolving the dispute over digital service tax with the United States

via:CnBeta     time:2021/1/8 5:03:28     readed:125

On the evening of January 7 local time, Dong brovskis, vice president of the European Commission in charge of economic and trade affairs, said on social media that the European Union had taken note of the decision of the US trade representative's office on the same day to postpone unilateral trade measures against France, which were related to the levy of digital service tax in France.East brovskis said that the EU is committed to seeking a solution with the United States, but relevant disputes should be resolved at the WTO level.

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East brovskis also made it clear that if the United States continues to unilaterally implement these trade measures, the EU will retain the possibility of using all policy options. However, the EU is willing to work constructively with the United States to find a timely solution to fair taxation in the digital field at the global level.

On July 11, 2019, the French parliament officially passed relevant legislation to levy a tax equivalent to 3% of French turnover on large technology enterprises with global digital revenue of more than 750 million euros, of which at least 25 million euros are generated in France. Due to the involvement of a number of US technology enterprises, the United States immediately launched a "301 investigation" against France's unilateral prior legislation and threatened to seek tariff retaliation. However, at the G7 summit held in August of that year, all parties agreed to start negotiations on the issue of digital services tax at the OECD level. However, the United States announced its withdrawal from the negotiations in June 2020, and formally decided to impose tariffs on some French goods in July. The relevant measures are scheduled to take effect on January 6, 2021.

According to the announcement issued by the office of the U.S. trade representative on the 7th, due to the ongoing "301 investigation" on digital services tax in other countries, the tax measures originally planned for France have been postponed. (CCTV reporter Zou Heyi)

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