Alphabet Google unit, Facebook and Amazon are amongst the companies that will give evidence on Monday at a U.S. government hearing, on the French government’s digital services tax.
In the month of July, the French Senate approved a 3% levy that will apply to revenue from digital services earned in France by companies.
The United States Trade Representative’s Office in July released an inquiry into the new tax it called “unreasonable.”
The office could dispute new tariffs on French goods as well as other trade restrictions once the public comment period closes on the 26th of August.
Amazon’s international tax policy Director Peter Hiltz said in written indication for the United States Trade Representative hearing that more than 10,000 French-based small also medium-sized businesses are selling on Amazon’s online stores.
Also, notify them of a certain increase in charges by 3% on the sales made on Amazon. According to the sources, Mr. Hiltz added that “U.S. products and services sold through Amazon’s online store in France will cost more as a result” of the tax.
The Facebook global tax policy head Mr. Alan Lee’s testimony said the tax “poses difficulties for Facebook’s business model and will hinder growth and innovation in the digital economy” as well as would require a re-engineering of systems.