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France: Digital services tax approved by parliament

France: Digital services tax approved by parliament

French legislation to impose a digital services tax on certain entities has been passed by the French parliament.


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The French Senate approved the legislation today, 11 July 2019. The National Assembly approved the legislation on 4 July 2019.

Companies subject to the digital services tax are those with digital revenue of more than €750 million worldwide and more than €25 million in France. This provision is expected to allow start-up companies to be exempt from the tax, with only very large companies being subject to the tax. Approximately 30 multinational taxpayer groups are expected to be subject to the tax (including a French group listed on the Nasdaq).

Taxable digital services are defined to include:

  • The provision of a digital interface to enable users of platforms to interact with each other with a view notably to exchange goods or services
  • Targeted advertising conducted on digital interfaces including transfer and management of personal data for advertising purposes


KPMG observation

The legislation has yet to be enacted because this requires action by the president, and this action is expected to happen within the next 15 days. However, this 15-day period can be "frozen" in the event of a transfer of the law to the constitutional court at the request of more than 60 members of parliament.

For more information, contact a tax professional with KPMG Avocats in France:

Marie-Pierre Hôo | + 33 (0) 1 55 68 49 09 |

Laurence Mazevet | + 33 (0) 1 55 68 49 67 |

Patrick Seroin | + 33 (0) 1 55 68 48 02 |

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