EU's Dombrovskis calls for international taxation of digital services

FILE PHOTO: Ukraine's Prime Minister Denys Shmygal gives a joint statement with European Commission Vice-President Valdis Dombrovskis after they signed a macro-financial assistance agreement at the European Commission headquarters in Brussels, Belgium July 23, 2020. Francisco Seco/Pool via REUTERS

VIENNA (Reuters) - The European Union needs to tax companies that generate its revenues with digital services as the money is needed to fund infrastructure and social programmes in the future, European Commission Vice President Valdis Dombrovskis said on Monday.

“We need to address the digital taxation, and we need to do it preferably internationally because especially the digital economy is quite globalised,” Dombrovskis, who also has temporary responsibility for trade, said at Austria’s Alpbach economic forum, which he joined online.

“With more digital economy it becomes also more of a challenge for our tax revenues to finance our infrastructure and social programmes,” he said.

Reporting by Kirsti Knolle; editing by Thomas Seythal