Global Tax Alert (News from the EU Competency Group) | 24 October 2013

European Commission to form Expert Group to address challenges for tax systems related to digital economy

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On 22 October 2013, the European Commission (Commission) agreed to form an Expert Group to address taxation of the digital economy.1

According to its press release dated 22 October, the Commission is willing to identify a comprehensive approach to taxing the digital economy in order to protect Member States’ tax systems against the erosion of their tax bases and to ensure fair taxation in the European Union (EU).

To this end, the Commission has agreed to name an Expert Group, whose main task will be to find the best ways of taxing digital and E-business within the borders of the EU. Accordingly, the group will focus on identifying the crucial problems related to the taxation of the digital sector from an EU point of view. The envisaged outcome of this working group is to develop feasible solutions for the problems of taxing the Digital Economy.

The Commission shall then use the recommendations of the Expert Group to establish a European tax framework for taxing digital and E-business in the EU.

The Expert Group shall be composed of seven internationally acknowledged experts on the digital economy and on taxation. The Chairman of the group will be a person with both a political background and remarkable expertise in the areas of digital economy and taxation. The objective of the group is to start work prior to the end of 2013 and to present the results of its work in the first half of 2014 to the Commission.

Parallel to the work of the Expert Group, the Commission will try to further support this work by putting the topic of digital taxation on the worldwide political agenda.

The press release states that the main aim is to ensure a coherent and complementary approach to digital taxation internationally and within the EU.

Endnotes

1 Decision C-2013/7082.

For additional information with respect to this Alert, please contact the following:

Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft, Munich
  • Dr. Klaus von Brocke, EU Direct Tax Leader
    +49 89 14331 12287
    klaus.von.brocke@de.ey.com

EYG no. CM3904