The U.S. House Ways and Means Committee has published a release from Chairman Kevin Brady (R-TX) applauding the EU's "abandonment" of the proposed digital services tax (DST) (previous coverage 12.5.2018). It is important to note, however, that the DST proposal has not been abandoned, but rather it is proposed that it be focused on digital advertising revenue, which is one of three revenue types to be included within the scope of DST in the original proposal.
Washington, D.C. — Today, House Ways and Means Committee Chairman Kevin Brady (R-TX) released the following statement after the European Union abandoned proposed plans for a new tax on digital services:
"The EU's abandonment of their proposal for a new digital services tax is welcome news. As I have said in the past, introduction of a new tax targeting cross-border digital services would have singled out a key global industry dominated by American companies and would have been a clear revenue grab. The new idea for a tax on advertising revenue that is being floated by some countries is similarly flawed and is appropriately being greeted with significant skepticism. Rather than pursuing measures like this that would result in double taxation, countries should continue working together through the OECD framework on the important global dialogue regarding the digital economy."