DIGITAL SERVICE TAX TARIFFS SUSPENDED FOR FRANCE AND DECLINED FOR THREE OTHER NATIONS

The United States Trade Representative (USTR) office issued multiple Federal Register notices on January 12, 2021, addressing the Digital Service Tax (DST) decisions for France, India, Italy, and Turkey.

France Digital Service Tax
In Federal Register 86, No. 7 FR 2479, the USTR suspended the tariffs on the 21 items including cosmetics, soaps, and handbags as previously announced in the July 16, 2020, Federal Register Notice 85, No. 137 FR 43292 which were to take effect on January 6, 2021.

India Digital Service Tax
In Federal Register 86, No. 7 FR 2478, the USTR determined that India’s Digital Service Tax is unreasonable or discriminatory and burdens or restricts U.S. commerce and thus is actionable under Section 301 of the Trade Act. This determination allows for action on behalf of the USTR, and the Federal Register notes that these matters will be addressed in subsequent proceedings under Section 301.

Italy Digital Service Tax
In Federal Register 86, No. 7 FR 2477, the USTR determined that Italy’s Digital Service Tax is unreasonable or discriminatory and burdens or restricts U.S. commerce and thus is actionable under Section 301 of the Trade Act. This determination allows for action on behalf of the USTR, and the Federal Register notes that these matters will be addressed in subsequent proceedings under Section 301.

Turkey Digital Service Tax
In Federal Register 86, No. 7 FR 2480, the USTR determined that Turkey’s Digital Service Tax is unreasonable or discriminatory and burdens or restricts U.S. commerce and thus is actionable under Section 301 of the Trade Act. This determination allows for action on behalf of the USTR, and the Federal Register notes that these matters will be addressed in subsequent proceedings under Section 301.

If you have any questions, please contact your local Noatum Logistics USA representative.