US Calls On EU To Delay Introduction Of Single Digital Tax
The US is urging European Union countries to shelve plans to introduce a flat tax on digital assets, AFP reports, citing a document and sources among diplomats.
US diplomats claim that the initiative would jeopardise plans to change the global taxation of internet companies promoted by the OECD and G20 countries.
The document quoted by AFP reads that the European Union’s plans « threaten ongoing work within the OECD/G20 framework » and « risk disrupting negotiations at a critical stage ». The agency’s sources cite Germany, the Netherlands and Scandinavian countries among the states that have received the document.
Under current rules, sellers of digital goods with customers from EU countries must file a value-added tax (VAT) declaration in each European state separately. The European Commission plans to announce plans to introduce a single system on 14 July. In parallel, OECD countries are negotiating a new global tax system. Initial agreements are expected to be reached by the G20 finance ministers’ summit in Venice to be held on July 9.