In its conclusions of 21 July 2020 the European Council tasked the Commission with putting forward proposals for additional resources in relation to establishing a modern, stable regulatory and tax framework to address developments and challenges of the digital economy. The digital levy is one of them. The Commission says that the new initiative will help address the issue of fair taxation related to the digitalisation of the economy and is not intended to interfere with the ongoing work at the G20 and OECD on reforms to the international corporate tax framework.

The Commission is particularly interested in gathering views on the main problems related to taxing the digital economy, for Member States and business. It also asks for feedback on possible solutions to these problems. The public consultation will feed into the work under way on the digital levy proposal for mid-2021. The closing date for responses to the consultation is 12 April 2021. To access the consultation, click here.