ECOFIN support for EU digital tax waivers

Nov 12, 2018

The Economic and Financial Affairs Council (ECOFIN) met in Brussels last Tuesday 6 November and on the agenda was the Commission’s proposal for a digital tax.  According to the ECOFIN press release, there are differences between member states on several issues, including the precise scope of services which would be subject to the tax.  The Presidency concluded that there will be further work at technical level in order to be able to reach an agreement at the Council meeting on 4 December.

Germany, which initially supported the plans for an EU digital tax, now wishes to wait for the output of an OECD report on digital tax which is due to be published in 2020.  Ireland continues to voice its opposition to the introduction of a digital tax at EU level on the grounds that such a tax would damage trade for Ireland and a digital tax favours larger consumer markets, putting Ireland at a distinct disadvantage.