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France's "GAFA" Tax Is Back, Looking For Big Tech To Pay Up

Nadia Ali

| 26 days ago


France has launched digital tax plans, which have allegedly begun requesting millions of dollars worth of tax payments from American technology companies.

Despite the US already leaving the negotiations, France has continued to list its own independent tax requirements, as Europe has been in the process of planning a European Union-wide digital tax for large technology corporations.

The Details

According to a Financial Times report, French authorities have already reached out to some large corporations, including Amazon and Facebook, with their tax payment demands. The French authorities claim that the tax payments will be due for the year 2020.

While it remains unknown whether Apple received a similar notice, this particular tax is called "GAFA," which is bluntly named after Google, Apple, Facebook, and Amazon.

First introduced in December 2018, France and the US agreed to delay applying the tax to provide adequate time for Europe's Organization for Economic Co-Operation and Development (OECD) to develop an international plan.

Time To Pay Up?

During the pandemic, these big tech companies have seen soaring numbers and exceptional turnover and have come out on top during this particularly trying time.

French officials say it is time for Apple to pay up now. They want Apple to give its fair share in taxes as they have not been paying fair amounts even before the pandemic.

These corporations have annual worldwide revenue of $890 million, with approximately $30 million generated in France.

The Vice President of Tax Policy at the National Foreign Trade Council in Washington explains to the Financial Times that it is imperative to do this now to avoid more of a trade war.

In response to France's tax demands, the US expects to respond by applying more tariffs on French goods, currently considering a 25% tariff on French makeup and handbags while also mulling a 100% tariff on champagne cheese.

It's safe to say; this tax disagreement is far from over.

Products Covered

allapplenews-product-MacBook Air
MacBook Air
Release Date
November 2020


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• 13.3" LED-Backlit Retina Display with IPS Technology
• Apple M1 chip
• Backlit Magic Keyboard and Touch ID Sensor
• Up to 18 Hours Video Playback
• 8GB / 16GB unified Memory


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