Digital taxation brings about a new era

To cover the economic and social damage caused by the coronavirus epidemic, the EU is reforming its budget, one of the key elements of which is the taxation of digital business models. However, Washington foresaw that any EU action taken in the absence of any consensus agreement would lead to severe trade repercussions.

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The European Commission has recently proposed a reform or supplement to the EU budget to cover the economic and social damage caused by the coronavirus epidemic. As part of this, the committee would, among other things, set up a new crisis management fund (‘Next Generation EU’) to supplement the EU budget for the next seven-year planning period, which is proposed to spend around € 750 billion on ‘reconstruction’ in Europe. In addition to the traditional sources of the EU budget (Member States’ contributions, customs revenues, etc.), the committee would finance the new fund by creating the possibility of additional new revenues.