The US Trade Representative has completed investigations into the taxes in India, Italy, and Turkey.
The US took action against 10 jurisdictions: In June 2020, the US Trade Representative (USTR) opened investigations into plans for a digital services tax (DST) in nine countries and the European Union, to determine whether they discriminated against US companies.
The USTR could take action: On 6 January 2021, the USTR found that the DSTs in India, Italy, and Turkey are discriminatory and inconsistent with prevailing principles of international taxation. The USTR will not take action at this stage, although it could impose tariffs on imports from those countries in the future. The USTR is also completing investigations in Austria, Brazil, Czech Republic, EU, Indonesia, Spain, and the UK.
The Biden administration could resume negotiations within the OECD: The USTR has currently suspended retaliatory action against France and its DST until investigations in all other countries are completed. The delay gives time for the incoming Biden administration to consider resuming talks for a new international framework within the OECD. France and the US initially agreed to allow more time for multilateral negotiations, however France started levying its DST in November 2020, as negotiations in the OECD stalled.
