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U.S. Finds European Digital Taxes Discriminatory. A Decision on Tariffs Rests With Biden.


What’s new. The USTR said late on Thursday that it found the digital service taxes in the U.K., Spain, and Austria to be discriminatory against U.S. companies and “inconsistent with prevailing principles of international taxation.”
“The taxation of companies that engage in international trade in goods and services is an important issue,” said Robert Lighthizer, the U.S. Trade Representative. “The best outcome would be for countries to come together to find a solution.”
No actions will be immediately taken on the taxes, which the USTR said burden or restrict U.S. commerce, as investigations continue into similar taxes in the European Union, the Czech Republic, Brazil, and Indonesia. The office said it will keep evaluating all available options, which could include tariffs on imports. ....

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