Ignoring the warning from the US, France makes a concrete move on the 3% tax imposed on the tech giants.
In early 2020, France agreed to suspend the imposition of digital taxes on Facebook, Amazon, Google and other tech companies. In response, the US also delayed the timetable to impose tariffs on goods from France.

However, a French official said that the country has resumed the "digital service tax" with large technology companies. In addition, other countries, including Italy and the United Kingdom, will also begin to collect similar taxes in the coming months.

As a counterattack, the US will impose tariffs on $1.3b worth of French imports on Jan. 6, 2021, mainly cosmetics and handbags.

In addition, the United States has started investigations into digital services taxes that other countries such as India and Turkey have adopted or are considering adopting, claiming they discriminate against companies of American technology.

In fact, at the end of last month it was reported that France had begun requiring US technology companies to pay taxes on digital services, despite the US warnings about possibly imposing new tariffs on goods, and French imports in retaliation.

The report at the time said that companies like Facebook and Amazon had received a notice from the French government, demanding 2020 tax payments on digital services.

"The companies that need to pay this tax have been notified," an official from the French Ministry of Finance also confirmed, specifically, US companies such as Google, Amazon, Facebook and Apple.

In March of last year, the French government introduced a digital service tax on major tech companies to achieve fiscal equity. This tax is levied on the revenue from digital services worldwide of not less than €750m (equivalent to $847m) and at least €25m (equivalent to $28m).

According to French Finance Minister Bruno Le Maire, the country will impose a 3% digital tax on about 30 internet giants, most of which are from the US. Le Maire plans to collect about €500m (equivalent to $565m) in taxes each year.

The US government argues that the country's tech companies have been unfairly taxed. Previously, the US warned that it would impose a 25% tax on French goods, including handbags and cosmetics.
Axact

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