The French finance ministry has sent out digital services tax notices to major tech companies.
France previously suspended the collection of taxes that affect companies like Facebook and Amazon, as negotiations were underway at the Organization for Economic Cooperation and Development (OECD) to revise international tax rules.
France ordered tech giants to pay “digital tax.”
The Treasury Department had previously warned that it intends to collect the tax in December, as planned if negotiations prove fruitless. That the negotiations had gone nowhere became clear in October, when almost 140 countries participating in them agreed to continue negotiations until mid-2021. Talks stalled as the Trump administration refused to sign a multilateral agreement, officials said.
Last year, France introduced a 3% levy on digital services revenues generated France by companies with over € 25 million and € 750 million worldwide. Paris has pledged to abolish the tax as soon as an OECD deal is reached.
