EU has postponed plans to adopt the digital tax

Currently, the EU has refused to introduce a tax on digital services in the near future, after the Finance Ministers once again failed to agree on proposals.

EU Finance Ministers met on 12 March. The negotiations focused on a compromise text proposed by France and Germany which would impose limits on the tax coverage of digital advertising services. The tax will primarily affect e-Commerce and the electronic presence of companies engaged in e-Commerce in the EU. However, the concept of digital services, as well as the tax base are remaining the subject of heated discussions

The Council stated that, despite of the broad support of the EU member States for the text of the law, some delegations maintained fundamental objections.

The initial proposal forwarded by the European Commission provided for a temporary three per cent excise tax on the turnover of certain online transactions. In December, Austria, which then presided over the Council, proposed a modified scheme that would focus on revenues from digital services when users contribute to the value creation process. France and Germany separately recommended focusing the tax base on advertising.

The Council stated that the current Romanian presidency will "work on the EU position in international discussions on the digital tax, in particular, taking into account the OECD report on this issue to be submitted by mid-2020".

On materials of the following website: https://www.consilium.europa.eu/en/meetings/ecofin/2019/03/12/