The Challenges of Digital Economy Taxation in the EU Public Administration

Abstract

Currently, the world, as well as the European Union, has been challenged by digital transformation. In the present time, digitalization has become the defining characteristic of modern society, slightly influencing several aspects of society, specifically by developing new economic platforms and transforming in trade patterns. The European Green Deal and Digital Transformation strategy represents the critical feature in shaping our modern world by integrating digital technologies and employing their potential, the European Union public administration faces the challenges of effectively implementing digital economy taxation instruments that enhance economic growth and sustainable development. To address the challenges, the European Union adopted a new strategy to ensure transparent and fair taxation. On March 21, 2018, the European Commission proposed new rules to ensure digital activities are taxed in a fair and growth-friendly in the European Union. The study aims to review the new European Union regulations related to digital activities and consolidate academic evidence regarding tax challenges initiated by digitalization. The study's determination to present a new perspective on these issues is intended to address the challenges of new tax policy and how the European Union will achieve green and digital transformation goals by encouraging a transition to fair and greener industries, as the digital economy has brought many new opportunities and benefits to citizens and companies. However, public service still questions adapting and certifying fair competition in this century. The European Union is playing an important role in this ongoing process and policy implementation. To promote good tax governance and cooperation within the European Union and globally. It will be beneficial to the European Union to contribute to economic development in the new digital era, together with ensuring fair competition and new cooperation.