Article author:
Ivana Dražić Lutilsky, Sanja Broz Tominac, Martina Dragija Kostić
Full article:
Year the article was released:
2024
Edition in this Year:
1
Article abstract:
TAXATION OF DIGITAL SERVICES
Abstract:Digital services are changing our society and economy, bringing new challenges
and problems for tax policy through development of digital economy. Digital
companies have new business models, often without a physical presence in different
countries, and at the same time they provide services to users whose contribution creates
value for these companies that states cannot tax under current rules as traditional
services. Also, it is often hard to determine the location of a customer which is important
for taxation. There are some important factors influencing taxation of digital
service such as significant economic presence from companies and creation of big
data by users of different countries. Some countries have introduced their taxes on
digital services independently, which means that there is no consensus on the taxation
of digital services at the international level. The aim of this paper is to highlight the
tax treatment of digital services in the European Union and, consequently, in Croatia.
Also, authors will analyze the legal solutions for the taxation of digital services in
France, the United Kingdom and the Republic of India, and make proposals for the
introduction of taxes on digital services in Croatia.
and problems for tax policy through development of digital economy. Digital
companies have new business models, often without a physical presence in different
countries, and at the same time they provide services to users whose contribution creates
value for these companies that states cannot tax under current rules as traditional
services. Also, it is often hard to determine the location of a customer which is important
for taxation. There are some important factors influencing taxation of digital
service such as significant economic presence from companies and creation of big
data by users of different countries. Some countries have introduced their taxes on
digital services independently, which means that there is no consensus on the taxation
of digital services at the international level. The aim of this paper is to highlight the
tax treatment of digital services in the European Union and, consequently, in Croatia.
Also, authors will analyze the legal solutions for the taxation of digital services in
France, the United Kingdom and the Republic of India, and make proposals for the
introduction of taxes on digital services in Croatia.
Keywords: taxation, digital services, legislation, EU, Croatia.