The European Commission stands ready to support Member States facing U.S. investigations as a result of their national taxes on digital services, said Benjamin Angel, Director of Direct Taxation at the Commission's Directorate General for Taxation and Customs Union (DG TAXUD), on Thursday 7 January.
The day before, the Office of the United States Trade Representative (USTR) had in fact ruled that the digital services tax introduced by Italy, as well as those introduced by India and Turkey, all discriminate against U.S. companies, are inconsistent with prevailing principles of international taxation, and restrict U.S. trade.
No reprisals have been announced at this time, but the USTR says it will continue to “evaluate all available options”.
“The Commission will support all EU Member States targeted by the U.S. procedure”, was the assurance given by Benjamin Angel on Twitter. On the same day, a European Commission spokesperson indicated that the institution had not yet received the U.S. notification and that they were refraining from making any further comments.
Surveys were indeed launched last June on the European Union digital service tax project in Austria, Spain, Italy and the Czech Republic, but also on similar taxes in the United Kingdom, Brazil, India, Indonesia and Turkey (see EUROPE 12497/28). In respect of these countries, the results are expected to be released soon, said the U.S. Trade Representative.
On Thursday, the U.S. Trade Representative also announced the suspension of tariff sanctions scheduled to take effect against France on 6 January as a result of its digital services tax.
In a news release, he indicated that this suspension was intended to foster a coordinated response with the ongoing investigations on the other ten jurisdictions. (Original version in French by Marion Fontana)