Digital Services Tax: Assessing the Policy Reasons for its Introductions in the European Union

This Study contains the final version of the document elaborated by the IBFD Task Force on the Digital Economy as a submission to the European Commission in the framework of its 2021 Public Consultation on the possible introduction of an EU digital levy. Based on a reconstruction of the underlying assumptions to this initiative, this Study assesses the related potentially positive and negative implications. In doing so, it engages on an analysis based on broader policy, thereby including interaction with domestic corporate income tax systems of the Member States, as well fundamental EU Law considerations. On the grounds of such a critical reconstruction and assessment of the proposals under scrutiny, the Study also sets forth considerations on possible alternatives and overall outlook on the future of the taxation of the digitalised economy in the EU.