Stuart Gibson was quoted on challenges of taxing digital components of tangible goods, as was proposed under the now-scaled back European Union (EU) digital tax proposal.
Stuart said that the task of taxing an integrated product could be quite an undertaking, since it would require significant modifications to the established value chain analysis for tangible goods — required for the calculation of value-added tax — already an involved process.
“There are methods that have been developed to determine the value that’s added at each stage of the manufacturing process,” he said. “Now you’re talking about a digital analog to that.”
“How can you calculate the value that’s added by lines of code?”
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