France is resuming collection of a special tax on Big Tech companies like Amazon and Facebook despite the threat of more U.S. retaliatory tariffs on French wines and other goods
The tax brought about 400 million euros to the French budget last year, but the government agreed to suspend it in 2020, in exchange for an American promise to drop the tariff threat pending talks on an international deal on taxing online companies.
France was hoping that such an accord could be reached by the end of this year, rendering the French tax moot. But the Trump administration pulled out of the negotiations, led by the Organization for Economic Cooperation and Development, and no such deal is ready yet.
A Finance Ministry official said the French Treasury sent the 2020 tax bills to Amazon, Google and other companies affected by the measure last week, and they have to pay by the end of the year. The ministry expects the tax revenue to total a bit more than last year because big tech companies have had a good year amid the pandemic.
France’s trade minister told The Associated Press earlier this month that he hopes President-elect Joe Biden’s administration rejoins discussions at the OECD for a global deal.