Our experts are providing leading analysis of proposals to tax revenues from digital activities around the world. As several European countries and even U.S. states continue to work towards implementing digital services tax (DSTs) policies, the uncertainty for the firms affected by these taxes will continue to rise. The posts below review the evidence that has been gathered on the impact of digital services tax (DSTs) policies, including our responses to OECD Public Consultation Documents.
The digitalization of the economy has been a key focus of tax debates in recent years. Our new report reviews digital tax policies around the world with a focus on OECD countries, explores the various flaws and benefits associated with the wide set of proposals, and provides recommendations for lawmakers to consider.
12 min read
Despite ongoing multilateral negotiations in the OECD, about half of all European OECD countries have either announced, proposed, or implemented their own unilateral digital services tax.
7 min read
We recently hosted an exclusive webinar discussion to get up to speed on recent digital tax developments and gain insight from leading international tax experts on the OECD’s BEPS project.
9 min read
A digital services tax like the one implemented by France likely violates both the General Agreement on Trade in Services and a model U.S. free trade agreement. However, it is uncertain whether meaningful relief could be obtained under either regime.
26 min read
Digital services taxes effectively ring-fence the digital economy by limiting the tax to certain revenue streams of digital businesses, discriminating in favor of more traditional sectors of the economy.
What is a digital services tax (DST)? What countries have announced, proposed, or implemented a DST? What are some of the criticisms of a DST? What are alternatives to a DST? What is the OECD BEPS project and what is its main objective? What is the main objective of OECD Pillar 1? What is the main objective of OECD Pillar 2?
8 min read
Policymakers are increasingly considering taxes on data processing and other businesses’ digital services, but these taxes increase costs at many stages of the production process for virtually all businesses, not just tech-oriented businesses.
7 min read
A destination-based value-added tax (VAT) or goods and services tax (GST) is a better instrument for taxing digital consumption by avoiding cascading. Recent experience shows that governments can tax digital consumption with a better structure than DSTs.
15 min read
Pennsylvania lawmakers are looking to impose the Commonwealth’s existing telecom gross receipts tax (GRT) on companies providing digital advertising services in Pennsylvania.
5 min read
Digital services taxes address a real concern—the need to adapt taxation to the digital economy—but they are not the right solution. They raise limited revenue, are often passed on to consumers rather than large digital firms, create economic distortions, increase complexity and compliance costs, negatively impact innovation and competitiveness, and risk international retaliation.
Since digital services taxes generate little revenue, place the cost on European consumers and not on large digital companies as intended, and risk escalating trade disputes, policymakers should rethink their strategy.
14 min read
Europe’s turn toward the UN is ultimately not a sign that governments are ready to resolve fundamental disputes over taxing rights. If anything, international cooperation on the goal that matters most—fair treatment of cross-border trade—is crumbling.
AI may be a transformative technology, but that is not a good justification for throwing core principles of tax policy out the window.
Illinois plans to impose a complicated, legally fraught new social media tax based on a few pages of confused, contradictory, and almost laughably incomplete legislative text embedded in the new budget.
10 min read
Currently, the European Commission has plans to generate more tax revenue to fund the forthcoming MFF, the long-term budget running from 2028 to 2034. But the truth is, without serious reform, the EU isn’t ready for new taxation.
Currently, about half of all European OECD countries have either announced, proposed, or implemented a digital services tax. Because these taxes mainly impact US companies and are thus perceived as discriminatory, the US responded with retaliatory tariff threats.
5 min read
The US, as the world’s largest services exporter, has a stronger interest in combating discriminatory services taxation than in pursuing tariffs.
44 min read
Closing the EU’s value-added tax (VAT) actionable policy gap could yield €773 billion in government revenue—four times the EU’s 2026 budget.
8 min read
A digital advertising tax in Utah will increase costs for Utah businesses and expose the state to complicated legal battles.
4 min read
Poland is proposing to broaden and raise its digital services tax (DST) from 1.5 percent to 3 percent. Because DSTs tax revenues, not profits, a company with a 10 percent profit margin would face a 30 percent effective tax rate on digital services provided in Poland.
6 min read
European policymakers would be wise to refocus tax and trade policies on what is good for Europe rather than trying to change policies in countries beyond European borders. Meanwhile, the Trump administration would be wise to recognize that the transatlantic relationship is a geoeconomic asset that can be mutually beneficial.
For the past 12 years, the International Tax Competitiveness Index has examined which countries have truly embraced tax competitiveness and which ones have lagged behind. Our experts examine how country rankings have changed over time and identify the largest movers and shakers.
5 min read
Public Law 86-272’s vague language, limited scope, and failure to evolve with modern commerce has rendered it increasingly ineffective, burdening businesses with heightened litigation and compliance challenges.
26 min read
Spain’s central government could learn some valuable lessons from its regional governments and other European countries about sound tax policy.
7 min read
Chicago Mayor Brandon Johnson’s (D) 2026 budget includes a new employer head tax, a new tax on social media companies, and an increase in the “cloud tax,” among other proposed tax increases that would hurt employment and penalize innovation.
8 min read
Sean Bray interviewed Dr. Aitor Navarro, Senior Research Fellow at the Max Planck Institute for Tax Law and Public Finance, about the future of the EU tax mix.
16 min read