The EU is hoping to agree to a new tax on tech firms that would be in place across the EU by Christmas, potentially providing around £4.5 billion in fiscal revenues among the 28 member states. Head of Tax for the European Commission Pierre Moscovici said substantial progress is being made in moving towards an agreement.
Earlier this year the Commission published proposals for a 3% levy. Imposing such a tax would mean charging more to companies such as Google, Amazon and Facebook, which have faced criticism for their low tax bills. However, the Republic of Ireland, the Czech Republic, Finland and Sweden are all presently opposed to a Europe-wide charge.
Should an agreement be secured before the end of the year, this may impact on the UK, as it could adopt the new measures before departing the EU on March 29th 2019 and retain them thereafter. Chancellor Philip Hammond has already threatened to act unilaterally and impose a levy in his Budget later this month.