The roll out of Digital Services Taxes has created unintended financial and administrative burdens for agencies. EACA is working to reduce the impact of these changes.
Countries all over the world have grappled with the challenge of taxing large multinationals – particularly in the digital space. Some have opted to implement Digital Services Taxes (DSTs), which have then been passed on by large online companies to media agencies in the form of additional fees. The OECD, meanwhile, agreed on a global tax deal in November – paving the way for a global solution to the problem and an end to the patchwork of national DSTs currently in place. This is a welcome step. At the same time, the European Commission still has plans for an EU Digital Levy, which it believes will be compatible with the global deal.
We believe that everyone should pay their fair share of tax. That’s why we are working to ensure that, as governments implement these changes, media agencies and other businesses are not vulnerable to any additional and disproportionate financial and administrative burdens.