Digital: the 2019 Gafa tax has been validated by the Constitutional Council
On Friday, September 12, the Constitutional Council validated the digital tax known as the Gafa tax, introduced in France in 2019 and which was notably contested by a subsidiary of the German media group Axel Springer.
Digital Classifieds France argued that this tax, described as a "discriminatory tax" by internet giants (Amazon, Facebook, Google, etc.) at the time of its introduction, was contrary to the principle of "equality before the law" because it would create "double taxation" for the companies subject to it.
France introduced this tax after failing to get its European tax project adopted and despite the opposition of the first Trump administration (2017-2021), which in 2019 denounced a measure targeting "unfairly American companies" .
The Gafa tax, which makes France a pioneer in this area, created a tax on the turnover of large internet companies in France, while most of them are based in the United States, where they are taxed on their profits. It generated approximately €750 million in 2024.
According to the request from Digital Classifieds France, which was joined by Airbnb Ireland, this tax would deviate from the "traditional criteria of territoriality of the tax" for determining its tax base.
In its decision, the Constitutional Council ruled that the French legislature had adopted "objective and rational" criteria for subjection and assessment, both in light of the "dematerialized nature" of digital technology and the budgetary objective pursued. The Council also considered that the legislature had been able, "without disregarding the principle of equality before the law" , to define identical taxation rules for all companies liable for the tax.
Other countries such as Austria, Spain and the United Kingdom have also imposed taxes on digital giants, whose taxes are often unrelated to the size of their profits.
La Croıx
