USTR investigates digital services taxes in nine more countries and the European Union, as multilateral efforts falter

On 2 June the Office of the United States Trade Representative (USTR) announced that it is launching investigations under Section 301 of the Trade Act of 1974 into digital services taxes (DSTs) adopted or under consideration in Austria, Brazil, the Czech Republic, the European Union, India, Indonesia, Italy, Spain, Turkey, and the United Kingdom.

The USTR seeks to determine whether the taxes are discriminatory or unreasonable and burden or restrict U.S. commerce. A finding in the affirmative, which is a virtual certainty, would allow the United States to take unilateral actions against imports of goods and services from the imposing country or jurisdiction, most likely in the form of increased tariffs on imports of their goods. These investigations have taken on a new impetus in light of the administration's 17 June announcement that it is stepping away for now from efforts at a multilateral solution to taxation of the digital economy being conducted at the Organization for Economic Co-operation and Development (OECD).

Read More: USTR investigates digital services taxes in nine more countries and the European Union, as multilateral efforts falter


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