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Business Consumption Taxes

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Digital Services Taxes, Data Processing Tax

Taxing Data Processing Doesn’t Just Tax Big Tech

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
Digital Services Taxes and the European Budget

Testimony: Are Digital Services Taxes a Viable Solution for the EU Budget?

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.

VAT exemption and registration thresholds in Europe, 2026

VAT Exemption Thresholds in Europe, 2026

Worldwide, 175 countries—including all major European countries—levy a value-added tax (VAT) on goods and services. However, to reduce compliance and administrative costs, most countries have VAT exemption thresholds: if a business is below a certain annual revenue threshold, it is not required to participate in the VAT system.

3 min read
Illinois Social Media Tax, Illinois 2026 State Budget

Illinois’ New Social Media Tax Is a Shambles

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
Germany Tax Burden on Labor and Consumption, Vale-Added Tax Base

Shifting Germany’s Tax Burden from Labor to Consumption Requires a Broad VAT Base

Shifting Germany’s tax mix away from labor to consumption remains a sound policy route to strengthen the country’s labor supply, but further eroding the VAT base with preferential rates for selected goods and services would counteract this goal by depleting the extra revenue for labor tax cuts while providing less-targeted relief for low-income households.

6 min read
Windfall Profits Taxes on Oil and Gas in Europe

Windfall Profits Taxes on Oil and Gas Should Be Left in the Past

Windfall taxes, particularly those imposed on the oil and gas industry, often appear as a quick fix for governments seeking to raise revenue during periods of high commodity prices. However, while these taxes may offer short-term revenues, they can also trigger negative consequences that undermine their intended purpose.

21 min read
Cigarette Taxes in the European Union, 2026

Cigarette Taxes in Europe, 2026

Cigarette smokers in the European Union pay far more in excise taxes than they do for the cigarettes themselves. Our latest map illustrates the wide variance in cigarette excise taxes across EU Member States.

6 min read
Road Taxes and Funding by State, 2026

Road Taxes and Funding by State, 2026

The amount of revenue states raise through roadway-related revenues varies significantly across the US. Only two states raise enough revenue to fully cover their highway spending.

5 min read
Biden trade policy including Biden tariffs and Trump tariffs, trade war, free trade, and trade agreements including Section 301 lists

FAQs About Border Adjustment

What is a border adjustment? Is it a new idea? How would it work in practice?

11 min read
2025 European Tax Policy Scorecard

2025 European Tax Policy Scorecard

The variety of approaches to taxation among European countries creates a need to evaluate these systems relative to each other. For that purpose, we have developed the European Tax Policy Scorecard—a relative comparison of European countries’ tax systems.

55 min read
Poland digital services tax, DST

Poland Considering a Second Harmful Digital Tax

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
International Tax Policy, European Geoeconomics

Lessons From European Geoeconomics & The Future Of International Tax Policy

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.