Statement on the "GAFA" tax

Paris, May 7, 2019 - The government has (finally) implemented the "GAFA" tax.

EFEL Power welcomes the introduction of this tax as of January 1, 2019, which is specific to web giants and other digital activities.

Indeed, these large digital companies escape the tax in the countries where they do their business. It is legal but it is unfair because these companies benefit from the immateriality of the services provided. And it is unfair competition, for local actors who play the game and do not seek tax evasion.

A number, to illustrate the point. In 2017, Google paid only €7 million in taxes in France... while at the same time transferring more than €20 billion through the Netherlands to a tax haven, Bermuda. Google recently escaped a €1.15 billion tax adjustment.

Of course, this tax is not perfect. Of course it disturbs the usual rules. But the negative reactions of American actors and those who defend them are in themselves a signal that this measure is a step in the right direction.

Let us remember that VAT, which makes it possible to tax where value is created, was invented in France and then imitated in other countries. We are in almost the same situation: GAFAMs create value with their users, i.e. where the turnover is generated. It should be remembered that VAT has been extended to all country since.

We call for European tax harmonisation on this subject. To make Europe a territory of growth and prosperity without the effects of predations and associated monopolies. We need to regain control over the taxation of digital technology. This tax thus marks a first step on this path beyond awareness.


About EFEL Power

EFEL Power is a cluster of French software publishers that brings together companies of various sizes and personalities from the French innovation ecosystem. The latter share the ambition to promote the "French Touch" and wish to make better use of their know-how in order to encourage the emergence of national champions with a national and international influence.

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