The Resource The digital consumption tax

The digital consumption tax

The digital consumption tax
The digital consumption tax
Amid rising tension between the United States and France over the Digital Services Tax (DST), this article proposes the imposition of a Digital Consumption Tax - a consumption tax that is imposed on digital transactions. Such consumption tax would be applied on the seemingly free interaction between Facebook (and other companies alike) and its Users. The main proposition of this article is that these deemed payments - the deemed subscription fee and the deemed royalty-like fee - are equal and offset each other, resulting in the current 'free' interactions that are taking place in the market. The immediate implication is that general principles of consumption tax that apply to barter exchanges should result in a 'new', uncollected, tax liability to Facebook, because the deemed subscription fee (as received by Facebook) should be subject to consumption tax (VAT or sales tax) in the country or state where service is consumed - where the individual User resides
Citation source
In: Intertax. - Alphen aan den Rijn. - Vol. 48 (2020), no. 5 ; p. 538-543
  • Avi-Yonah, R.S
  • Fishbien, N
Geographic coverage
Language note
  • digital economy
  • DST
  • tariff
  • consumption tax
  • VAT
  • sales tax
  • barter
The digital consumption tax

Library Locations

    • IBFD Library AmsterdamBorrow it
      Rietlandpark 301, Amsterdam, 1019 DW, NL
      52.3736660 4.9336932
Processing Feedback ...