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Google, Facebook, Amazon testify in the US of the French digital tax

The Google Alphabet Facebook and Amazon units are among the companies that will testify to the French government's digital services tax on Monday at a US government hearing.

In July, the French Senate approved a 3% tax levied on digital services generated in France by companies with a French turnover of more than € 25 million and a worldwide turnover of € 750 million (838 Million dollars).

The office of the US Commercial Agent initiated in July an investigation of the new tax called "unreasonable". The Office could impose new customs duties on French goods or other trade restrictions after the expiry of the public comment period on 26 August.

Amazon's director of international taxation, Peter Hiltz, said in a written testimony to the USTR hearing that more than 1

0,000 French small businesses are licensed – and mid-sized companies sell in Amazon's online stores and tell them that certain Amazon.fr sales will increase by 3% from October 1st.

He added that "US products and services will be sold through Amazon Online The retail store in France will cost more due to the" tax ".

Alan Lee's statement, head of Facebook's global tax policy, said that The tax "brings difficulties for the business model of Facebook and will hinder growth and innovation in the digital economy" Revision of its systems.

He added that "Although we have the data necessary to calculate the tax, we have additional Would need time and resources to capture this data and maintain it for the tax se new tax and audit purposes. "

Nicholas Bramble, Google's Commercial Policy Advisor, said in a written report that the French tax" is a sharp departure from the long-established tax rules and clearly targets a subset of companies "and" likely to lead to disputes " Jennifer McCloskey, vice president of policy at the Information Technology Industry Council, representing Amazon, Facebook, Apple Inc., Google and many others, will testify on Monday that the tax "represents a worrying precedent, unnecessarily deviating from progress towards a stable one and long-lived international tax policies and could disproportionately affect US-based companies. "

passed the supply chain."

A group of companies including Airbnb, Amazon, Expedia Group, Facebook, Google, Microsoft and Twitter, said in joint written commentary for the U STR is the tax "unjustifiable because it violates international agreements, and inappropriate because it is discriminatory, retroactive and contrary to international taxation principles."

Last month, US President Donald Trump threatened to override French wines over VAT. The White House said: "France's unilateral action appears to target innovative US technology companies providing services in various sectors of the economy."

Other EU countries, including Austria, Britain, Spain and Italy, have also announced plans for their own Digital Taxes.

A levy is required because large, multinational Internet companies like Facebook and Amazon make profits in low-tax jurisdictions like Ireland, regardless of where the revenue comes from.

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