France clarifies tax rules for communication services with audiovisual features, aiming to distinguish messaging platforms from traditional audiovisual services.
Amendment clarifies tax scope
The National Assembly approved an amendment on Friday, October 30, to the 2027 Finance Bill. This amendment aims to clarify which communication services are subject to a specific tax on advertising related to on-demand audiovisual content.Tax applies to specific services
The amendment, introduced by Céline Calvez of the Together for the Republic party, defines the conditions under which services are taxed. It targets advertising broadcast through on-demand audiovisual content access services, known as TSV-G.Exclusion for communication platforms
The text excludes services primarily meant for interpersonal communication from the tax. This applies when their audiovisual features are only a secondary part of the service. For example, a messaging app that allows video sharing would not be taxed as an audiovisual service.Purpose of the amendment
The goal is to prevent platforms like messaging apps from being classified as audiovisual services simply because they allow users to share or view videos. Céline Calvez emphasized the importance of evaluating a service as a whole rather than focusing on individual features.Collaboration with Snapchat
In her explanatory notes, Céline Calvez mentioned that the amendment was developed in collaboration with Snapchat. This highlights the effort to ensure that the classification of services reflects their primary purpose.Amendment not yet final
Although the amendment was adopted during the first reading in a public session, it is not yet part of the final legislation. Its inclusion will depend on further discussions and reviews of the 2027 Finance Bill by the parliament.
