Common system of a digital services tax on revenues resulting from the provision of certain digital services
01020304
With the European Parliament.
Last active 13 Dec 2018
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What this bill does
In plain terms: what it changes and who it affects.
Creates an EU-wide 3% tax on large companies’ revenues from certain user-based digital services.
Who it affects
Large digital businesses earning significant EU revenues from targeted online advertising, digital intermediation platforms, or selling user data. Small businesses and start-ups are generally excluded by revenue thresholds.
Core of the proposal
- Taxes targeted advertising, multi-sided digital interfaces, and transmission of user-generated data.
- Applies only above EUR 750 million worldwide revenue and EUR 50 million EU taxable revenue.
- Allocates tax to Member States based on where users’ devices are located.
- Uses a one-stop-shop system for identification, returns, payment, and Member State information sharing.
Key provisions
- Takes effect
- The Directive enters into force 20 days after Official Journal publication; Member States apply implementing provisions from 1 January 2020.
- Transitional law
- Member States must adopt and publish implementing measures by 31 December 2019 before applying them from 1 January 2020.
Latest update
26 May 2026The most recent development in this bill's progress.
Moved to European Parliament
Documents
3 recentSourcesOEIL