On May 14, 2026, the European Commission officially released the “Revised Digital Services Tax (DST) Regulation,” which will take effect on January 1, 2027. The new rules will impose a 3% digital services tax on enterprises with global annual revenue exceeding €7.5 billion and EU domestic revenue over €1 billion, covering social media, search engines, online advertising, e-commerce platforms and other fields. It is expected to generate more than €15 billion in annual tax revenue for the EU. The new regulation focuses on adjusting the tax scope and calculation method: expanding the previous tax scope, which only targeted advertising and e-commerce platforms, to emerging digital areas such as AI services, cloud services, and digital content subscriptions; changing the tax basis from “user location” to “revenue generation location” to prevent enterprises from avoiding taxes by transferring profits across borders. The EU stated that the new rules aim to address the “mismatch between taxation and value creation” in the digital economy, plug loopholes in the traditional tax system, and ensure that tech giants pay taxes fairly. Affected by the new rules, major European and American tech giants such as Google, Meta, Amazon, and Microsoft will be the main taxpayers, expecting to face an additional tax burden of billions of euros annually. Some enterprises have expressed opposition, arguing that the new rules will increase operating costs, inhibit innovation, and may consider adjusting their business layout in the EU region. The EU emphasized that the new rules are in line with the principle of international tax fairness and will keep pace with the global digital tax reform process to avoid double taxation. Analysts point out that the EU’s new digital services tax rules will trigger a chain reaction in the global digital tax system, potentially prompting major economies such as the United States, Japan, and South Korea to accelerate digital tax legislation and reshape the global digital economy tax order. At the same time, the new rules will also force tech giants to optimize their profit models, reduce reliance on easily taxable businesses such as advertising, and shift to high-value-added digital service areas.