A Tax Before The Tax
The European Commission also has a second tax plan that if passed would go into effect immediately. It calculates this one could cost tech companies $5.6 billion (5 billion euros) and would apply to digital activities that “escape the current tax framework entirely.”
It would apply to money created from selling online advertising space; digital intermediary activities that allow users to interact with other users, and which can facilitate the sale of goods and services between them; and the sale of data generated from user-provided information.
This 3-percent tax could be collected by any members state in which the company has users. However it would only apply to those businesses with worldwide revenues of $850 million (750 million euros) and EU revenue of $56 million (50 million euros).
