Is the EU Moving the Goalposts on Digital Services Taxes?

    View Author March 2021

    On March 16, 2021, Valdis Dombrovskis, the Executive Vice-President of the European Commission, made the following remarks at an informal press conference following a meeting of the EU’s Economic and Financial Affairs Council (ECOFIN): ‘‘Lastly, on digital taxation: We still need a global agreement on reforming the institutional system at the level of the OECD and G20. So we welcome the change of position by the new U.S. administration and remain confident of reaching a consensus by mid-2021. In parallel, as mandated by the European Council, we are continuing preparations for proposing an EU digital levy, to serve as an EU own resource by 2023. We will ensure that this will complement the OECD process and be WTO-compatible.’’ In this article, Jeff VanderWolk explores what Dombrovskis may have been referring to and what the potential outcome of the current processes both in the EU and in the OECD/G20 Inclusive Framework might be.

    *This article was first published in Bloomberg Tax on March 29, 2021.