Tweakers · Technology

Europe waits for international agreements on digital tax

The European Commission is postponing the introduction of a general European digital tax (digitax). European Commissioner Wopke Hoekstra first wants to investigate whether global agreements can be made, partly out of fear of American reactions.

Hoekstra indicates that Europe first wants to explore "all possibilities at an international level" for taxing digital companies. He emphasizes that Europe would only levy a digital tax as one bloc if global agreements fail.

However, international agreements seem difficult, particularly due to the reluctance of the United States, where the largest tech companies originate and which has no interest in a tech tax.

Several European countries, including France, Spain, Italy, and Austria, have already introduced their own tech tax. In the Netherlands, there is also political support for a digitax, but it has not yet been implemented.

The European Commission is hesitant due to previous American sanctions against countries with their own digitax, and fears further negative reactions from the US.

France, on the other hand, sees a joint European plan as a strengthening measure that can not only generate revenue but also prevent the US from playing European countries against each other.

Hoekstra indicates that the preference is for a solution through the Organization for Economic Cooperation and Development (OECD). A final decision on the approach, international or European, is expected in the coming months.

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