Ministru prezidents

European Council discusses the taxation of the digital economy

On Thursday 22 March, Prime Minister Māris Kučinskis participated in work of the European Council in Brussels that focused on the taxation of the digital economy. 

According to Latvia’s position, all companies have to pay fair taxes, including in the digital area, in order to ensure globally equal competition.

As regards the fight against fraud and tax evasion, as well as aggressive tax planning at the EU and international level, the officials stressed the need to implement the OECD measures, in particular those agreed at the European Union level.

"I believe that these issues should be kept on our agenda and discussed regularly by the European Council, and included among the priorities in the EU's legislative plans"

It has also been emphasized that tax solutions for the digital economy should be as global as possible. The Prime Minister notes that the issue of taxation of the digital economy has to be kept on the agenda of the European Council.  There is a growing need to address this topic in the context of all kinds of taxes, including, for example, the value added tax, given that it has a significant impact on the national the budget.

The European Commission on 21 March publicised substantive proposals for virtual representation and a temporary solution. It argues that the EU must be exemplary in the search for and implementation of solutions.

Andrejs Vaivars
Press Secretary to the Prime Minister
Mob.: 29228678
E-mail: Andrejs.Vaivars@mk.gov.lv