France: Digital services tax upheld (Constitutional Court decision)
Constitutional challenge to DST rejected
The French Constitutional Court on September 12, 2025, issued its decision (no. 2025-1157 QPC) on the digital services tax (DST), following a referral by the Conseil d’État in June 2025.
The court rejected the constitutional challenge brought by Digital Classifieds France, holding that the DST provisions—Articles 299, 299 bis, and 299 quater of the French Tax Code—do not infringe upon the principles of equality before the law or equality in public burdens as guaranteed by the French Constitution.
The decision confirmed the legality of the DST regime, including its group-based thresholds, territoriality rules based on the “national presence coefficient,” and the exclusion of certain digital services from the tax base, which the court found to be sufficiently justified and proportionate.
KPMG observation
The decision confirmed that the DST remains enforceable and constitutionally valid. As a result:
- Companies subject to DST must continue to comply with the existing rules and thresholds.
- Taxpayers who have paid DST and were considering refund claims based on constitutional grounds will no longer be able to challenge the tax on that basis.
- The ruling provides legal certainty for the French DST, which may discourage further litigation on constitutional issues.
More broadly, the decision may reinforce the legitimacy of similar unilateral digital tax measures in other EU member states, especially in the absence of a coordinated global solution.
For more information, contact a KPMG tax professional in France:
Laurence Mazevet | laurencemazevet@kpmgavocats.fr