EU Digital Services Tax

The EU Digital Services Tax (DST) is a tax designed to address the profits digital companies earn from providing online services within European countries. It targets large tech firms that generate substantial revenue from activities like online advertising, social media, and digital marketplaces. The aim is to ensure these companies pay their fair share of taxes in the countries where their users are located, rather than shifting profits to low-tax jurisdictions. Introduced to modernize tax rules for the digital economy, the DST seeks fair and consistent taxation, although its implementation and scope are subject to ongoing EU negotiations and international discussions.