Fiscora

Introduced in 2019, the digital services tax (often referred to as the “GAFA tax”) targets certain large digital groups whose business model relies on monetising user data and attention. Distinct from VAT, it is an additional tax on the turnover generated by certain digital services.

Thresholds to monitor

The tax applies to businesses whose worldwide turnover from taxable digital services exceeds a threshold in the hundreds of millions of euros, and whose French-derived share exceeds a second threshold, set in the tens of millions of euros. These two conditions are cumulative: an international group may cross the first threshold without being liable in France if it does not cross the second.

Taxable services: intermediation and targeted advertising

Two broad categories of services fall within the scope of the tax: making a digital interface available electronically that allows users to get in touch with other users (marketplaces, matchmaking platforms), and targeted advertising services based on user data. Direct sales of goods or services, along with regulated financial services, are generally excluded from the scheme.

Filing and advance payments

The tax is subject to an annual return, accompanied by two advance payments made during the year, calculated on the basis of the taxable turnover of the previous financial year. Determining the taxable base — particularly the split of turnover between users located in France and abroad — is often the most technical part of achieving compliance.

Fiscora’s support

We help affected groups analyse their exposure to the tax, determine the taxable base, and manage their annual filing obligations.