France to Tax Netflix and YouTube

September 22, 2017 Taxation in France

Netflix TaxPARIS – Online video providers in France are about to be slapped with a tax, which will fund the development and filming of new local media content.

France has received tentative approval to implement a tax on the revenues garnered by online video services which have French viewers, even in cases where the company is not established or registered in France.

The tax will be levied at a rate of 2 percent on the revenues from subscription-based services, such as Netflix.

Further, video-sharing sites with no subscriptions, such as YouTube, will be taxed based on their advertising revenues from French viewers.

The funds from the tax will be used to fund the French film board, which will then go on to subsidies local original media content, such as TV shows, video games, and movies.

The film board expects that the tax will bring in EUR 2 million from Netflix alone, and another EUR 3 million YouTube.

A similar tax has already been enforced in France, however, it applied only to locally registered businesses.