France introduced the Digital Services Tax (DST) through Law No. 2019-759 on July 25, 2019, after failing to secure EU consensus on taxing digital giants. The tax ensures that large tech companies pay fairer taxes based on their activity in France. It applies to companies with global digital revenues over €750 million, including €25 million from France, and targets user-interaction platforms and targeted digital advertising. E-commerce resales and digital content delivery are excluded. The tax rate is 3% of gross annual revenue (excl. VAT) from taxable services in France, declared via the March CA3 VAT return and due by April 25. Monthly filers must also make two advance payments in March and September. The DST is intended as a temporary measure, to be withdrawn once OECD Pillar 1 is in place. Until then, it remains a tool to close digital tax gaps and support tax fairness.
France's Digital Services Tax: Key Details and Temporary Status
Public
France
Author: Ljubica Blagojević
Category:
Fiscal subject related
Views:
6114
Content accuracy validation date:
30.07.2025
Content accuracy validation time:
12:03h
Main Objectives and Context
- France originally pushed for an EU-level tax
- As consensus failed—largely due to tax unanimity rules—France acted unilaterally.
- The DST will be repealed once a global agreement (Pillar 1 of the OECD reform) is implemented. While Pillar 2 (global 15% minimum tax) has been adopted via the 2024 Finance Act in France, Pillar 1 remains pending.
Scope of the Tax
- Applies to companies—regardless of domicile—whose global taxable digital revenues exceed €750 million, and at least €25 million generated in France.
- Thresholds are assessed at group level, including related entities.
- Two service categories are taxed:
- Digital platforms enabling user interaction, like online marketplaces.
- Targeted digital advertising services based on user data.
- Exemptions: traditional e-commerce (resale model) and digital content delivery.
Tax Rate and Collection
- The DST is 3% of annual gross (excl. VAT) revenue from taxable services in France.
- It is reported via the March CA3 VAT return and payable by April 25 of the following year.
- Payment rules:
- Simplified VAT regime filers: declare on CA12, no advance payments.
- Monthly CA3 filers: must pay two installments:
- 1st in March, alongside the final balance for the prior year.
- 2nd in September.
France’s DST is a transitional measure aimed at pressuring global agreement on digital taxation while ensuring immediate revenue from major tech firms profiting from the French digital market. The tax is narrowly targeted, administratively integrated with existing VAT procedures, and meant to be temporary, pending OECD reforms. However, until Pillar 1 is implemented, the DST remains a key national tool for addressing digital tax gaps and leveling the playing field for domestic businesses.
Other news from France
France updates e-invoicing specifications with Version 3.2
Public
France
Author: Vukašin Santo
France
Author: Vukašin Santo
France’s e-invoicing specifications Version 3.2 add operational clarifications on platform reporting, PPF interactions, and public invoicing flows, while invoice formats and lifecycle rules remain covered by AFNOR standards. France has released Version 3.2 of its external e-invoicing specifications, introducing further operational clarifications for the upcoming national e-invoicing framework. Th... Read more
New document was uploaded: E-Invoicing/E-Reporting Guide for Retailers
France
Author: Vukašin Santo
France is introducing a new digital VAT compliance framework based on two connected obligations: e-invoicing and e-reporting. These obligations will significantly affect how retailers issue invoices, exchange invoice data, report sales information, and integrate their internal systems with certified service providers. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
New document was uploaded: KOBAK Portal - Practical User Guide for Retailers
France
Author: Vukašin Santo
The purpose of this document is to provide a guide for understanding more about Kobak Portal. The KOBAK portal is an online platform provided by the Hungarian Tax Authority (NAV), designed to support retailers in managing their cash registers. It serves as a central point for registering devices, activating them, monitoring their status, and handling required administrative processes. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
New webinar was uploaded: Recorded Webinar: Are You Audit-Ready? Retail Tax Checks in Germany, France & Italy
Author: Ivana Picajkić and Vukasin Santo
Tax audits are increasingly important in European retail due to high transaction volumes and evolving compliance rules. With different fiscal systems in Germany, France, and Italy, understanding audit focus areas is essential. This webinar covers key audit frameworks, differences, and practical compliance insights for retailers. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
New event was created: Reminder - Join our free webinar: Are You Audit-Ready? Retail Tax Checks in Germany, France & Italy
Public
Author: Ivana Picajkić and Vukašin Santo
Tax audits are becoming an increasingly important part of modern tax systems across Europe, especially in the retail sector where transaction volumes are high and compliance requirements are constantly evolving. With different fiscalization models in place across Germany, France, and Italy, understanding what authorities actually check during tax audits is essential for retailers and software pro... Read more
France Publishes 2026 Income Tax Practical Brochure
Public
France
Author: Vukašin Santo
France
Author: Vukašin Santo
The 2026 Income Tax Practical Brochure outlines income tax rules for 2025, offering taxpayer guidance on innovations, procedures, and reductions, while enhancing search functionality on the French tax portal. The French tax authorities have officially published the 2026 Income Tax Practical Brochure, covering income earned in 2025. The document provides taxpayers with a clear and accessible overvi... Read more
New event was created: Join our free webinar: Are You Audit-Ready? Retail Tax Checks in Germany, France & Italy
Public
Author: Vukašin Santo and Ivana Picajkić
Tax audits are becoming an increasingly important part of modern tax systems across Europe, especially in the retail sector where transaction volumes are high and compliance requirements are constantly evolving. With different fiscalization models in place across Germany, France, and Italy, understanding what authorities actually check during tax audits is essential for retailers and software pro... Read more