Taxing digital activities - IV. Conclusions

Author: Paul Verhaeghe

  1. The electronic payments Directive covers both personal and business data and offers an explicit legal stand-alone base to impose, on all providers of such services in a Member State, the obligation to organise an office on the territory of that state.

All providers of such services could therefor fall under the scope of the existing definition of Permanent Establishments of Articles 5, § 2 (b) and (c) OECD MC.

The personal data protection Directive offers a non-explicit legal base to require from all entities, which collect personal data from users in a Member State, to organise an office in that Member State.  National law could further justify this obligation under various other safety and prevention requirements combined with the implementation of the personal data protection Directive.

As far as non-personal data obtained through free services was collected in a Member State, that Member State could declare similar provisions applicable since this type of service does not fall under the scope of Article 57 TFUE.  The Member State could motivate such a national legislation with references to the same concerns of safety and prevention.

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