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France: Digital services tax to be paid in December 2020

France: Digital services tax to be paid December 2020

The Minister of Finance, Bruno Le Maire, last week announced that payments of the French digital services tax for 2020 will be required in December 2020.

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Background

In February 2020, pending the outcome of the OECD's work on reforming international tax rules, the Ministry of Finance postponed the payment of installments of the digital services tax—installments that otherwise would have been paid in April and October 2020. No late payment interest or penalties were to be imposed with regard to these two installments. These installments, thus, could be replaced with the remittance of a single payment in December 2020. Read TaxNewsFlash

The digital services tax payment for the year 2019 was not affected by this postponement. 

December 2020 payment

Recognizing the current status with regard to negotiations at the OECD level, the Minister of Finance confirmed that the digital services tax for 2020 is to be paid in December 2020 (including the April and October installments that had been suspended).


KPMG observation

The tax administration has not yet specified the date(s) for payment of the 2020 one-time amount, but it is likely that the dates will be those applicable to VAT returns when the taxpayer company is liable for VAT in France, or 24 December 2020 at the latest for foreign companies not registered for VAT in France.

Meanwhile work at the OECD is ongoing, with the OECD Secretary General expressing confidence that an agreement could be reached by mid-2021. The French Minister of Finance, for his part, stated that a digital services tax at the European Union level could be possible if the OECD negotiations are not successful.

For details about the digital services tax in France, read: TaxNewsFlash


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

Marie-Pierre Hôo | + 33 (0) 1 55 68 49 09 | mhoo@kpmgavocats.fr

Laurence Mazevet | + 33 (0) 1 55 68 49 67 | laurencemazevet@kpmgavocats.fr

Patrick Seroin Joly | + 33 (0) 1 55 68 48 02 | pseroinjoly@kpmgavocats.fr

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