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Taxation of Digital Services in the Context of Freedom to Provide Services

Publication date: 23.10.2023

Financial Law Review, 2023, Issue 31 (3)/2023, pp. 38 - 54

https://doi.org/10.4467/22996834FLR.23.011.18595

Authors

Soňa Simić
Department of Financial Law, Tax Law and Economy, Faculty of Law, Pavol Jozef Šafárik University in Košice, Slovak Republic
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Titles

Taxation of Digital Services in the Context of Freedom to Provide Services

Abstract

The presented paper is dedicated to the taxation of digital services in the light of one of the basic freedoms of the European internal market, namely the freedom to provide services according to Art. 56 of the Treaty on the Functioning of the European Union. The taxation of digital services is currently characterized by the application of uncoordinated unilateral mechanisms by individual States, most often in the form of a digital services tax (DST). The author first provides a categorization of these unilateral mechanisms, especially in the field of direct and indirect taxes, and then considers the so-called "other unilateral mechanisms" consisting of inter alia special procedural legal institutes (e.g. the obligation of the digital platform as an intermediary to withhold tax). Subsequently, the author provides an overview of the interpretation of the provisions of Art. 56 of the Treaty on the Functioning of the European Union in three cases discussed by the Court of Justice of the European Union concerning unilateral mechanisms of taxation of digital services. 

References

Download references

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The order of the Brussels Capital Region of 23 December 2016 on the regional tax on tourist accommodation establishments

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Communication from the Commission to the European Parliament and the Council of 21th March 2018. Time to establish a modern, fair and efficient taxation standard for the digital economy, COM (2018) 146 final.

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Information

Information: Financial Law Review, 2023, Issue 31 (3)/2023, pp. 38 - 54

Article type: Original article

Authors

Department of Financial Law, Tax Law and Economy, Faculty of Law, Pavol Jozef Šafárik University in Košice, Slovak Republic

Published at: 23.10.2023

Received at: 21.08.2023

Accepted at: 05.09.2023

Article status: Open

Licence: CC BY-NC-ND  licence icon

Percentage share of authors:

Soňa Simić (Author) - 100%

Classification number:

JEL Classification System:

Tax Law (K34)

Article corrections:

-

Publication languages:

English