On 21 March 2018, the European Commission (EC) published its EU digital tax package on the taxation of the digital economy which consists of four main parts:
- a Communication to the European Parliament and the Council of the EU
- a proposal for a Council Directive laying down rules relating to the corporate taxation of a significant digital presence
- an accompanying Recommendation to the above proposed Directive relating to the corporate taxation of a significant digital presence, and
- 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.