Is the EU ready for new taxation rules for the digital economy?

The European Commission presented its Digital Taxation Package and proposed new rules to ensure that digital business activities are taxed in a fair and growth-friendly way in the EU. The measures would make the EU a global leader in designing tax laws fit for the modern economy and the digital age.  Essentially, the Digital Taxation Package consists of the following digital service taxation proposals: 1. The proposal for a Council directive laying down rules relating to the corporate taxation of a significant digital presence. Digital technologies bring many benefits to society and, from a tax perspective, they create opportunities for tax administrations and offer solutions to reduce administrative burdens, facilitate collaboration between tax authorities, as well as addressing tax evasion. However, digitalisation is also putting pressure on the international taxation system, as business models change. Policymakers are currently struggling to find solutions which can ensure a fair and effective taxation as the digital transformation of the economy accelerates, and the existing corporate taxation rules are outdated to catch such evolution. The application of the current...