Legislation introducing a 3 percent tax on digital sales has come into force in France, following its publication in the country’s Official Journal.
The CCIA (Computer & Communications Industry Association) lobby group was among the organisations reacting to the official implementation of the new rules. In a statement, the group reinforced its message of criticism, already expressed in March, while highlighting the fact that the tax applies retroactively from the start of the year.
The measure was voted by the lower house of parliament in April and was adopted in its final version earlier this month. It applies to businesses with annual turnover above EUR 750 million internationally and EUR 25 million in France, with around 30 companies expected to be affected. Its scope covers a wide range of digital activities, including targeted advertising, personal data used for marketing purposes, and intermediary services from marketplace platforms.
The Trump administration has been actively opposing the tax and has recently ordered an investigation to assess if it unfairly targets US companies.French finance minister Bruno Le Maire has strongly defended the measure amid pressure to back down, while keeping a conciliatory tone over future developments. “I must reiterate the point for our American partners that this national tax should be an incentive to move ahead with the project to find an international solution,” he recently told the press referring to the work programme agreed within the OECD.
