Wednesday, December 15, 2010

France will begin taxing Internet Advertising Jan 1

The new tax on online advertising spends called the "Google tax" was passed by the French government this week and will start Jan. 1, 2011, Le Journal du Net reported. The tax will be paid by online advertisers, not Google directly unless they advertise their products a lot in France.

"The idea already several years old to tax online advertising will therefore become a reality in France. Industry professionals, including'Asic (Association of Community Internet Services) and the French branch of the IAB (Interactive Advertising Bureau), had strongly opposed the introduction of a tax that would undermine a nascent industry. They particularly criticized the reasoning of Senator Marini, whose avowed goal was to tax the American giants of the Web, but in fact leads to penalize French publishers,"le Journal reported in French.