Brussels’ move on digital taxes raises transatlantic stakes

Tech giants like Google and Facebook may soon face a new tax in the EU that could deliver a major hit to their bottom line — as well as a radical shift in the way their tax bill is calculated.

According to a 12-page draft report obtained by POLITICO Pro, the European Commission wants to tax digital companies’ gross revenues at rates between 1 and 5 percent, based on where their users are located and how much advertising revenue they bring in.

If implemented, this move is bound to further ratchet up tensions between Europe and the United States.