The digitalisation of the economy is happening at a very fast pace involving both the digitalisation of so-called “bricks-and-mortar” business models and the activities of highly digitalized ICT companies. The tax framework, on the other hand, was not capable of keeping up with such a quick transformation.
With this in mind, DG TAXUD launched a consultation on the “Fair taxation of the digital economy” to define an approach to the taxation of the digital economy.
The consultation listed the main problems of the international tax system in relation to the digital economy and proposed both temporary and long-term solutions to tackle these issues.
Representing 230,000 tax professionals from France, Germany and Italy, ETAF took the initiative and advocated in favour of the efforts of the European Commission to find a balanced and equitable solution in the taxation of the digital economy. However, ETAF underlined the global dimension of the phenomenon. Therefore, ETAF suggested that the Commission should focus its efforts on finding possible solutions in relation to the concept of taxable presence of a company, considering that the concept of physical presence is constantly becoming less important in this digitalised environment. Finally, ETAF highlighted the leadership role that the European Union should play in this field within the international framework (e.g. at OECD level).
The results of the public consultation will be duly published, together with the responses provided.