No tax on Big Tech digital services

The European Commission has decided to eliminate the digital services tax for Big Tech companies, including Amazon, Apple, and Google, from its 2028-2034 budget proposal. Following the global minimum tax , Donald Trump has scored another personal victory. The news comes during the final phase of ongoing negotiations on tariffs.

New tax for companies

The European Commission will present its 2028-2034 budget proposal on July 16. It lists all the revenues expected over seven years, including those from taxes. The digital services tax is not included in the list. Europe has therefore chosen to follow Canada, which suspended the implementation of the Digital Services Tax after Trump 's "threats."

The President of the United States had requested the reopening of the investigations initiated in 2019, as digital services taxes are considered discriminatory and a form of extortion . The Trade Representative will have to evaluate possible retaliatory measures, including the application of tariffs on products imported from countries imposing the tax, including Italy , France, and Spain.

According to a draft document seen by Politico , Bloomberg , and the Financial Times , the European Commission is proposing a new tax on companies operating in Europe with an annual turnover of more than €50 million. The goal is to raise between €25 million and €30 million annually.

Additional taxes are planned for tobacco products and non-recycled electronic waste. The text is not yet finalized, so there may be last-minute changes. Full details will be released next Wednesday.