On 21 March 2018, the European Commission (EC) published its EU digital tax package on the taxation of the digital economy.
It comprises four main parts:
a) a Communication to the European Parliament and the Council of the EU
b) a proposal for a Council Directive laying down rules relating to the corporate taxation of a significant digital presence
c) an accompanying Recommendation to the above proposed Directive relating to the corporate taxation of a significant digital presence, and
d) a proposal for a Council Directive on the common system of a digital services tax on revenues resulting from the provision of certain digital services.
The package thus contains two new draft EU Directives. The EC views the first draft Directive as a comprehensive long-term solution and the latter as the short- term/interim solution to quickly address the issue.