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After investigations into the digital service taxes (DSTs) adopted by Austria, Spain, and the UK, the US Trade Representative has concluded that each tax discriminates against US companies, is inconsistent with prevailing principles of international taxation, and burden or restricts US commerce.
US Trade Representative Robert E Lighthizer said: ‘The taxation of companies that engage in international trade in goods and services is an important issue. The best outcome would be for countries to come together to find a solution.’
The US does not plan to take any specific actions in connection with the findings at this time but will continue to evaluate all available options.
On 6 January, the US Trade Representative reached a similar conclusion on the digital services taxes operated by India, Italy and Turkey.
