On May 21, 2019, the French senate presented a law project for the creation of a tax on Digital Services(1).
Find below the main points of the law project.

Taxable companies

The tax is aim to large companies in the digital sector whose taxable turnovers exceed EUR 750 million for services provided worldwide and EUR 25 million for those provided in France.

Taxable services

  • The provision by means of electronic communications of a digital interface which enables users to interact with each other in order to exchange goods or services.
  • Advertising placed on digital interfaces. These services may include, but are not limited to, purchasing, storing and distribution of advertising; advertising control and performance measurement services; and user data management and transmission services.
  • Sale of data for advertising purposes.


The digital service tax applies when:

  • If the digital interface allows the exchange of goods and services, when the user is located in France.
  • If the digital interface does not allow the exchange of goods and services, when the user has opened the account in France.
  • For advertising placed on a digital interface, when the user who consults the interface is located in France at the moment of the advertisement.
  • For the sale of data, when it was collected from a user located in France.

Applicable rate

The amount of the tax is calculated by applying a rate of 3%.

Fiscal procedure

The system stablished for VAT will be used for the Digital Service Tax as well.