French Constitutional Court to Review Digital Services Tax for Potential Constitutional Violations

• French Constitutional Court to review the 3 percent Digital Services Tax
• Referral made by France’s Conseil d’État on 17 June 2025
• First review since the DST’s enactment in 2019
• Triggered by a taxpayer’s refund claim citing constitutional rights violations
• US is reviewing retaliatory taxes on DST
• Concerns about fairness and equality of the tax
• Allegations of discrimination between domestic and foreign companies
• Unequal treatment of digital and non-digital services
• Issues with group-based thresholds and national presence coefficient
• Potential enforcement inconsistencies disadvantaging foreign operators
• Constitutional Court’s ruling expected in the coming months
• No conflicts with tax treaties were identified

Source: vatcalc.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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