EU: New tax package proposed; tax treatment of digital platforms addressed
EU: Tax treatment of digital platforms addressed
The European Commission today announced that a new tax package has been adopted. One measure concerns the tax treatment of digital platforms.
The tax package has three separate but related initiatives. According to a related EC release:
- The tax action plan presents 25 distinct actions for tax simplification.
- The proposal on administrative cooperation (DAC 7) would extend EU tax transparency rules to digital platforms—with an aim that those entities that make money through the sale of goods or services on platforms pay their fair share of tax. This new proposal will ensure that EU Member States automatically exchange information on the revenues generated by sellers on online platforms.
- The communication on tax good governance focuses on promoting fair taxation and addressing unfair tax competition, in the EU and internationally. Reform of the Code of Conduct and improvements to the EU list of non-cooperative jurisdictions are part of this plan.
Read a July 2020 report prepared by the KPMG member firm in the Netherlands
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