The European Commission is examining a suite of tax proposals targeting digital services, gambling, and crypto assets as potential sources of revenue for the next multiannual financial framework. According to internal documents, these measures could generate up to €11 billion annually, offering a new fiscal avenue for the bloc's budget.
Digital Services Tax Revived
At the heart of the plan is a renewed push for a digital services tax (DST) on large tech companies. The Commission had previously proposed a Europe-wide DST in 2018, but negotiations stalled due to opposition from member states like Ireland and Luxembourg, which host many tech giants' European headquarters. The new proposal would apply a 3% levy on revenues from digital advertising, online marketplaces, and data sales, targeting firms with global annual revenues above €750 million and EU revenues exceeding €50 million. Brussels estimates this could bring in roughly €4 billion per year.
The move comes as the Organisation for Economic Co-operation and Development (OECD) continues to work on a global tax deal, but progress has been slow. The EU's unilateral approach could pressure international negotiations, though it risks trade tensions with the United States, home to many of the affected companies.
Gambling and Crypto Levies
Alongside the DST, the Commission is considering a coordinated tax on online gambling services. Currently, gambling taxes vary widely across member states, from Malta's low 5% rate to Poland's 50% levy. A harmonised EU tax could standardise rates and curb cross-border avoidance, potentially raising up to €3 billion annually. The proposal would cover sports betting, casino games, and poker, with a suggested rate of 15% on gross gaming revenue.
For crypto assets, the Commission is exploring a transaction tax of 0.1% to 0.3% on exchanges of cryptocurrencies and stablecoins. This would align with the EU's Markets in Crypto-Assets (MiCA) regulation, which came into force in 2023. The tax could generate an estimated €2 billion per year, though volatility in crypto markets makes projections uncertain. The plan also includes measures to improve tax transparency and combat evasion, such as mandatory reporting by crypto service providers.
These proposals are part of broader discussions on the EU's next long-term budget, which will run from 2028 to 2034. The current budget, worth €1.2 trillion, is funded primarily through member state contributions, customs duties, and a share of VAT revenues. However, new spending priorities—such as climate action, digital transformation, and defence—have created pressure for additional revenue sources.
The Commission's analysis suggests that these taxes could reduce the burden on national budgets, which currently contribute about 70% of EU funds. The proposals have drawn mixed reactions from member states. Countries like France and Germany have expressed support for a digital tax, while Ireland and Luxembourg remain sceptical. Meanwhile, the gambling industry has warned that a harmonised tax could drive operators to unregulated markets, and crypto advocates argue that a transaction tax could stifle innovation.
The Commission is expected to present formal legislative proposals later this year, following consultations with stakeholders and member states. Any new taxes would require unanimous approval from the Council of the European Union and consent from the European Parliament, a process that could take years. The outcome will depend on political negotiations, particularly with countries like Hungary, which has previously blocked EU tax initiatives. As Brussels seeks to secure its financial future, these proposals represent a significant shift towards direct EU taxation, moving beyond traditional reliance on national contributions.
