Naslov
Tax challenges in the digital economy: EU perspective

Autori
Hodžić, Sabina

Vrsta, podvrsta i kategorija rada
Poglavlja u knjigama, znanstveni

Knjiga
The new digital era: digitalisation, emerging risks and opportunities

Urednik/ci
Grima, Simon ; Ozen, Ercan ; Boz, Hakan

Izdavač
Emerald Group Publishing

Grad
Bingley

Godina
2022

Raspon stranica
191-211

ISBN
978-1-80382-980-7

ISSN
1569-3759

Ključne riječi
digital economy ; taxation ; digital economy and society index ; EU ; tax challenges ; tax administration

Sažetak
The main feature of modern society today is the digital way of life combined with digitalisation. It affects every aspect of life. Today’s main drivers of change are modern electronic communications and highspeed internet connections or services created by digitalisation. Thus, digitalisation stimulates economic growth by creating new jobs, especially in the information and communication sector, increasing the savings of individuals and public and private companies, increasing productivity and providing new opportunities for personal development and motivation. Therefore, the digital economy poses significant challenges to the EU tax system. The identified tax challenges are nexus, data and characterisation, standard tax avoidance practices and direct and indirect tax risks. To address these challenges, the concept of Tax Administration 3.0 should be implemented. Under this concept, digital tools will make tax administration better organised and more efficient, both in combating abuse and improving the quality of tax reporting and compliance. Aim: This study aims to present the digital economy’s direct and indirect tax challenges from an EU perspective. In addition, it will also present the current situation of the digital levy proposed by the European Commission and the level of Europe’s digital performance among EU member states. Method: Following the Digital Economy and Society Index (DESI) methodology, Europe’s digital performance varied widely among EU member states between 2015 and 2020. Findings: The results show that the digital sector is highly involved in tax planning practices and significantly affects Europe’s digital performance. Moreover, there is no consensus on implementing the digital levy in EU member states since only a few of the EU member states have implemented the digital levy. Based on the findings, the author proposes introducing the digital levy in all EU member states to restore and maintain the sustainability of public finance, especially after the crisis COVID-19.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA