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John Warner, shareholder in the firm's Tax section, comments on the scaling back of the scope of the European Union's digital tax proposal and the task of quantifying the digital component of nondigital products.

The simplest approach to taxing an integrated product — one with both digital and physical components — might be to have the tax apply only when the digital aspect is a predominant feature of the product, according to John Warner of Buchanan Ingersoll & Rooney PC in Washington, D.C. A more precise approach would involve breaking down the price and allocating an amount to the digital feature, with the analysis based on either the cost or value of that feature, he said.

Read more in Law360's article "Narrowed EU Digital Tax Delays Pain for Nondigital Firms, Too."