France seems to have given up on reaching consensus on an EU-wide digital services tax, by announcing that it will introduce its domestic DST from 1 January. Earlier this month France had said that it would give the EU until March to agree a pan-EU deal.
So what has changed?
Domestic and EU-wide DSTs are only meant to be a temporary solution until the OECD secures agreement on an internationally agreed profit allocation model. But the concern with any temporary solution is that once a country is receiving the tax revenues - paid by large multinationals rather than voters - it may find it difficult to give them up.
The French story demonstrates that this is a real concern. President Macron needs to fund his measures to calm the gilets jaunes, and accelerating the DST provides a useful source of revenue, from taxpayers who are not protesting on the streets.
But this piecemeal approach is no way to design an international tax system for the 21st century.

/Passle/5badda5844de890788b571ce/SearchServiceImages/2026-03-05-22-19-40-744-69aa017c81537a51f5747663.jpg)
/Passle/5badda5844de890788b571ce/SearchServiceImages/2026-03-05-15-27-36-778-69a9a0e8a5089d4b5616d91b.jpg)
/Passle/5badda5844de890788b571ce/SearchServiceImages/2026-02-27-10-00-42-793-69a16b4a5417270d30abaacc.jpg)
/Passle/5badda5844de890788b571ce/SearchServiceImages/2026-02-19-17-31-35-766-699748f7ff07facd13d14806.jpg)