EU's Dombrovskis calls for international taxation of digital services

FILE PHOTO: European Commission Vice-President Valdis Dombrovski delivers a speech during a joint news conference on European Semester 2020, at EU headquarters in Brussels, Belgium May 20, 2020. John Thys/Pool via REUTERS/File Photo

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