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Prospects for Introducing a Digital Tax in the EU

Polish Institute of International Affairs (PISM), Bulletin | 25/02/2019

The European Commission (EC) wants to tax the digital sector in the EU. According to the Commission’s calculations, companies operating on the virtual market pay much lower taxes than traditional enterprises. The aim is to tax U.S. corporations that record high revenues on the EU market but it will also affect European enterprises. The tax is supported by only a few Member States, which diminishes the likelihood of it being introduced quickly. Under pressure from France, Germany, and Spain, the EC is developing a new, narrower version of the proposed regulations, which would be beneficial for Poland.

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