France’s Constitutional Council to Decide on Legality of Digital Services Tax on September 12

• France’s Constitutional Council will rule on the digital services tax on September 12
• The case involves challenges from Digital Classifieds France and Airbnb Inc
• The 3 percent DST was introduced in 2019 and is argued to breach the principle of equality before the law
• The tax applies to revenues from targeted advertising, sale of user data, and intermediary services
• It affects companies with global revenues of at least 750 million euros and French revenues of 25 million euros or more
• The challenge is significant for France’s DST as part of a global movement to tax large digital companies
• The United States criticizes DSTs as discriminatory against American tech firms
• International tax negotiations have not yet resulted in a global agreement, and France will maintain the DST until a global solution is adopted

Source: globalvatcompliance.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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