The European Commission will postpone its plan to introduce a new tax on digital services in late July, a US official said on Monday after intense pressure from the US administration.
Some European officials have also questioned the size of the EU’s planned executive tax after the G20 countries agreed on a global corporate tax reform on Saturday.
The US administration is wary of the EU initiative, as it wants existing national taxes on digital services to be abolished as part of the global reconstruction of cross-border corporate taxation.
“We have decided to suspend our work on our new digital tax as a new resource owned by the EU,” EU Commission spokesman Daniel Ferry told a news conference in Brussels. He added that the EU would review the situation in the autumn.
Asked on Saturday by EU Economic Commissioner Paolo Gentiloni whether a plan to charge for digital services could be postponed, he said the EU’s priority was to implement the G20.