The Bill introducing the French Digital Services Tax (the “French DST”) presented by the French Government on 6 March 2019 and subsequently amended by the National Assembly and the Senate, was formally enacted on 24 July 2019 and then published on 25 July 2019. 

The French DST is applicable with effect from this year, 2019.

As it is assessed in principle on taxable revenues generated between 1 January and 31 December of each year, on the portion of those revenues attributable to France, some specific provisions have been included for this first year of application.

Hence, for the purpose of the advance payment due in 2019, the French DST:

- will be based on taxable revenues generated in 2018, with the portion corresponding specifically to French taxable services being assessed on revenues generated in the period between 26 July 2019 (i.e., the day following the enactment of the French DST Bill) and 31 October 2019,

- will be paid in November 2019 (together with the VAT declaration filed in respect of October 2019 for taxpayers subject to the standard VAT regime, and by no later than 25 November 2019 for the other taxpayers).

It is also worth noting that large groups will be able to opt for group-level centralized filing/payment of the French DST (such election is possible until 31 October 2019 and will be effective as from the first payment due after that date, i.e., November 2019).

Pending an international consensus on a harmonized digital services tax, the importance of which was emphasized at the G7 meeting held in France last week, it seems that an increasing number of countries are considering implementing similar domestic legislation.

The most recent of such developments is the draft proposal for a 2% digital services tax presented a few days ago in the United Kingdom, following other individual initiatives, both in EU countries (e.g., in Italy (where the publication of executive decrees is pending), in Spain, or in Austria) and in non-EU countries (e.g., in New Zealand, or in South Korea).