Many European countries have been advocating for
country and/or European Union wide digital services taxes (DST) structured so
that they would primarily target large U.S. technology firms. The
proposal has not been universally supported within the EU. In an effort to move
the issue forward in December, a French/German “compromise” was introduced that
narrowed the DST to make it even more targeted to handful of U.S. companies, and
applied it only to digital advertising where revenues exceed a high threshold.
The proposals have received a strong pushback from U.S. government officials including Treasury Secretary Steven Mnuchin, former Chairman of the House Ways and Means Committee Kevin Brady (R-TX) and Senate Finance Committee Chairman Charles Grassley (R-IA) and Ranking Minority Member Ron Wyden (D-OR).
The DST and digital advertising tax promise to be continuing issues into 2019. AAF will continue to monitor the issue and express our opposition when and where appropriate.