A new 25 percent tariff on soap, cosmetics, and handbags from France is set to take effect Jan. 6.
In 2020 France enacted a three percent tax on total annual revenues generated by some companies from providing certain digital interface services (e.g., e-marketplaces for goods and services) and Internet advertising services to, or aimed at, French users. The Office of the U.S. Trade Representative has determined that this DST discriminates against U.S. companies and is inconsistent with prevailing tax principles on account of its retroactivity (to Jan. 1, 2019), its application to revenue rather than income, its extraterritorial application, and its purpose of penalizing particular U.S. technology companies.
- Posted by Joe DeSilvetri
- On January 8, 2021
- 0 Comments