On Monday 12 November, the Council of the European Union’s working group on tax issues discussed a revised version of the Austrian Presidency's compromise on the proposal to tax gross income from the activities of digital platforms ('digital services tax’ or DST) at a rate of up to 3%.
Both technical and political work is gaining momentum in preparation for the crucial meeting of European Finance Ministers on Tuesday 4 December, during which unanimous agreement is expected.
The text, dated 6 November, of which EUROPE has a copy, incorporates the results of the ministerial discussions of the last Ecofin Council (see EUROPE 12131).
The sale of data currently remains within the scope. A very large majority of countries had indeed voted in favour of its retention, with the exception of Germany.
As for the provisions on the 'sunset clause', they have been deleted and a new proposal has yet to be made following the French proposal, which would formally adopt the Directive in December, but with an implementation date set for the end of 2020, instead of 1 January 2019.
Another amendment concerns the exchange of information. While in an earlier version of the compromise (see EUROPE 12128), the Council seemed to be moving towards an automatic exchange of information between the competent authorities of the Member States, the Austrian Presidency is now considering a "spontaneous" exchange of information by electronic means using the Common Communication Network (CCN).
The text also clarifies how the tax deduction is shared within the same group.
A Franco-German agreement would be "within reach"
On Monday on France Inter, the French minister Bruno Le Maire considered that a Franco-German agreement was "within reach". The tireless advocate of the DST spared no efforts in persuasion and remained optimistic about Berlin's support (see EUROPE 12132).
German Minister Olaf Scholz is reported to have indicated that he is now in favour of a binding agreement on the taxation of the digital sector at the meeting on 4 December, reported the German newspaper Der Spiegel on Monday.
The Council's work schedule is full until the December meeting. The working group will meet again on 16 and 21 November, while the high-level panel on tax issues will meet on 22 November. (Original version in French by Marion Fontana)