France has resumed collecting the digital tax after a truce with US| companies earlier this year, reports The Wall Street Journal. In late 2019, France hit US tech giants like Google, Amazon and Facebook with a digital tax that equaled 3% of digital revenue for companies with more than €750m in annual sales. In response, the US threatened to put tariffs of up to 100% on $2.4bn of French imports.
Early this years, the parties reached a truce with France agreeing to pause the tax until year's end if the US backed off of the tariff idea.The Wall Street Journal now reports that France has resumed collecting the digital tax.
Other countries, including the UK and Italy, passed similar taxes this year and will soon start collecting the fees, it says. So on January 6, the US will hit $1.3B of French imports with tariffs. Similar tariffs for 10 other countries, including the UK and Italy, could happen after a pending investigation.
The rising number of local digital tax laws make it increasingly complicated to pass an international tax law, though talks continue and such a deal could be reached next year.
