June 7, 2021
June 2, 2021, USTR Katherine Tai announced the conclusion of the one-year Section 301 investigation of the Digital Service Tax adopted by Austria, India, Italy, Spain, Turkey and The UK. The final decision is to impose additional tariffs on certain goods from these origins, while suspending the tariffs for up to 180 days to allow additional time to complete multilateral negotiations.
On March 26, 202, the US Trade Representative announced the next steps in its Section 301 investigations of Digital Services Taxes (DSTs) adopted by Austria, India, Italy, Spain, Turkey and the United Kingdom. It was determined in January 2021 that these countries were subject to action under Section 301 as they discriminated against US digital companies, were inconsistent with principles of international taxation and burdened US companies. The USTR is proceeding with public notice and comment process on possible trade actions to preserve procedural options before the conclusion of the statutory one-year time period for completing the investigations.
Originally, Brazil, the Czech Republic, the European Union and Indonesia were considered in the investigation. However, as they have not adopted nor implemented the DSTs, the USTR is terminating these four investigations without further proceedings.
For more information regarding Section 301 DST investigations please use the below link:https://ustr.gov/about-us/policy-offices/press-office/press-releases/2021/march/ustr-announces-next-steps-section-301-digital-services-taxes-investigations
Please reach out to Crane Trade Services should you have any questions regarding this matter. They can be reached at CWTSConsulting@craneww.com.