European Economic and Social Committee reports on efforts to tax digital economy

European Economic and Social Committee, in a report released July 30, recommended that the EU analyze the effect of any interim measures to tax the digital companies on investments, start-ups, jobs, and growth before adopting any such rules.

Such an analysis would be in addition to an impact assessment, said the EU advisory committee, which is comprised of employers, trade unions, and other representatives.

The committee strongly urged the EU to work toward reaching international consensus on taxing the digital economy.

The committee also expressed concern that a digital services on revenue tax might benefit larger economies with many consumers at the expense of smaller exporting economies.

The full report of the committee’s opinion on the taxation of the digital economy is available at this link.