✅ Key Developments
- National Assembly Vote:
On 28 October 2025, the French National Assembly voted to double the DST rate from 3% to 6% as part of the 2026 Budget Bill. This tax targets major tech companies (often referred to as GAFAM) with global revenues above €750 million and at least €25 million in French digital sales. [ouest-france.fr], [lexpress.fr], [journaldunet.com] - Expected Revenue Impact:
The increase is projected to raise €700 million annually, compared to the current €350 million, helping offset France’s budget deficit. [mindcron.com] - Scope of Tax:
Applies to revenues from:- Online advertising
- Sale of user data
- Digital intermediation services (marketplaces, platforms) [eurotax.fr]
- Political Context:
- Initial proposals aimed for a 15% rate, but lawmakers settled on 6% to avoid severe trade repercussions.
- The amendment passed with 296 votes for, 58 against, despite government warnings about retaliation risks. [ouest-france.fr], [lesechos.fr]
⚠️ International Reaction
- US Response:
The U.S. administration has threatened immediate retaliatory tariffs on French goods (wine, luxury items) if the DST hike is implemented. This mirrors tensions from 2019 when similar measures triggered trade disputes. [mindcron.com], [vatcalc.com] - OECD Context:
The increase comes amid stalled negotiations on a global digital tax framework (OECD Pillar 1). France argues the DST will remain until an international agreement is reached. [finance.yahoo.com]
Useful Links
Latest Posts in "France"
- Updated Connection Procedures for the Definitive CBAM Register in France (MACF 2.0)
- Training ‘Holding: Facilitator & VAT’ (Nov 18)
- France Ends VAT Simplification, Requires Direct Registration for Non-EU Importers
- France Approves Digital Services Tax Hike to 15% for Large Tech Platforms
- France Updates VAT-Exempt Goods Lists for Guadeloupe, Martinique, and Réunion Effective March 2025
