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ECOFIN Fails to Reach Agreement on EU Digital Services Tax but Efforts to Continue — Orbitax Tax News & Alerts

Despite hopes that agreement could be reached on the EU's proposed digital services tax (DST) before the end of the year, a compromise proposal put forward during the 4 December meeting of the Economic and Financial Affairs Council did not gain the necessary support and was not discussed in detail.

According to a release on the meeting, a number of delegations cannot accept the text for political reasons as a matter of principle, while a few others are not yet satisfied with some specific points. It is not the end for the DST proposal, however, with the presidency recommending that the Council working group continue working on the basis of the latest compromise text and elements proposed by France and Germany in a joint declaration that was examined during the meeting. The joint declaration includes a proposed amendment to focus the DST so that it would only apply in respect of digital advertising revenue, while allowing individual EU Member States to apply DST to a broader base under domestic legislation.

The next Council meeting is scheduled for 22 January 2019.