Taxing digital activities - II. 4) Paid digital services

Author: Paul Verhaeghe

  1. This business model can be described as offering or organising services in the Member State (1) as an intermediary or directly (2) through digital interfaces (3) and in exchange of payment (4).

Call centres or web-based paying services can be set up all over the globe without requiring physical contact with clients.  Risks of dislocation of collecting income and parts of the digital service are generally high in this business model.

  1. The combined criteria 1 (offering or organising services in the Member State) & 3 (through digital interfaces) exclude services that are generally not conducted by digital interfaces.

They require in general a meeting in person with the client (doctors, lawyers, architects,..). This exclusion would only apply to the direct providers of these services, and not to digital intermediaries.

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