DOI: 10.36871/ek.up.p.r.2021.04.02.007
UDC 336.22

Authors

S. V. ZAYTSEV,
Student, Faculty of Taxes, Audit and Business Analysis, Financial University under the Government of the Russian Federation, Moscow, Russia

Abstract

In March 2018 the European Commission presented a proposal to adopt a digital services tax (DST) on certain types of revenues of multinational digital Companies. The purpose of the digital services tax is to compensate in the short term for the low level of corporate taxation of these companies in the European Union and thus meet the urgent need of civil society for greater tax fairness. DST is presented as an indirect tax on turnover and is often compared to value-added tax (VAT). In this article, the author seeks to highlight the many differences that exist between the harmonized European Union VAT and the new DST. In addition, the author challenges the idea that the DST will actually be an indirect tax and, most importantly, that it will effectively increase tax justice in the European Union.

Keywords

digital service tax, indirect taxation, value added tax, concept of permanent establishment, European commission, European Union, analysis.