France imposes digital tax on Google, Apple, Facebook, Amazon

(FILES) A file photo taken on November 20, 2017 shows logos of US multinational technology company Google displayed on computers' screens. Google is dropping out of the bidding for a huge Pentagon cloud computing contract that could be worth up to $10 billion, saying the deal would be inconsistent with its principles. The decision by Google, confirmed to AFP in an email October 9, 2018, leaves a handful of other tech giants including Amazon in the running for the Joint Enterprise Defense Infrastructure (JEDI) contract aimed at modernizing the military's computing systems. / AFP PHOTO / LOIC VENANCE
Agence France-Presse

The French Parliament on Thursday adopted, by a final vote of the Senate, the introduction of a tax on `GAFA’, making France one of the first countries to impose a tax on digital giants.

The GAFA tax refers to an acronym for Google, Apple, Facebook and Amazon.

The digital tax is endorsed by the opposition-controlled upper house, paving the way to the eurozone second largest power to unilaterally tax internet giants by three per cent on much of their digital sales in France.

This is related to advertising, websites and the resale of private data.

The tax was initially adopted by the National Assembly, the lower house of parliament, on July 4.

GAFA targets digital companies with global annual sales of more than 750 million euros ($845.6 million) and sales in France of at least 25 million euros.

Introduced in France from Jan. 1, this three per cent tax on digital gross sales would help to collect 400 million euros this year and 650 million euros by 2022.

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