- France introduced the Digital Services Tax (DST) in July 2019 after failing to secure EU consensus
- The tax targets large tech companies with global digital revenues over 750 million euros and at least 25 million euros from France
- It applies to user-interaction platforms and targeted digital advertising, excluding e-commerce resales and digital content delivery
- The tax rate is 3 percent of gross annual revenue from taxable services in France
- DST is declared via the March CA3 VAT return and due by April 25
- Monthly filers must make two advance payments in March and September
- The DST is temporary and will be repealed once OECD Pillar 1 is in place
- France acted unilaterally due to EU tax unanimity rules
- Pillar 2 of the OECD reform has been adopted in France, but Pillar 1 is pending
- The DST is a transitional measure to pressure global agreement on digital taxation and ensure immediate revenue from major tech firms
- It is integrated with existing VAT procedures and aims to address digital tax gaps and support tax fairness
Source: fiscal-requirements.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.
