French "video tax" extended to all digital platforms
by Fabien Lemercier
- The European Commission has approved a French decree obliging companies such as Netflix and YouTube to pay tax
After many delays, despite parliament voting in favour in both 2013 and 2016, the French government has finally published an implementation decree on the so-called “Netflix" and "YouTube" taxes, which have been examined and approved by the European Commission. From now on, all digital video platforms, both free and paid, including those operating in France but financially registered abroad (such as Netflix in Amsterdam, for example), must pay a 2% video tax (all French DVD, VoD, and subscription service providers already pay said tax), which will be based on revenues from sales or rentals, or from advertising, depending on the platform profile (free or paid). The proceeds will go to the CNC, which will use them to finance new content, fitting in with the French system in which the downstream (broadcasters) finances the upstream.
"This is a great victory for the cultural exception," enthused Frédérique Bredin, president of the CNC. "Culture is a pioneer in Europe for digital taxation. Along with Germany, we are the first country to integrate major foreign platforms into our ecosystem in order to help finance new content. This decision is a first. It's essential that we ensure that all stakeholders, historical broadcasters and internet giants are treated equally."
(Translated from French)
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