Austria Considers Tax On Cloud Services Like Google Drive, Dropbox

Austria Considers Tax On Cloud Services Like Google Drive, Dropbox

A call by an author’s group in Austria to expand taxes levied on storage media to include systems such as hard drives and cloud storage has led to concerns that consumers in that country could be forced to pay to access services such as Google Drive, Dropbox and Microsoft’s SkyDrive.

The group, which goes by the name IG Autoren (Author’s Syndicate of Austria), made the following announcement in its latest newsletter:

“We want not just a hard disc levy, but a levy for using the cloud, and we want that for each use of our work,”

IG Autoren’s demand comes as Austria’s authorities are carrying out a review of the country’s copyright laws. The review has attracted the interest of numerous groups that have  made submissions.

However, IG Autoren faces a tough battle if it’s going to get its way. A lobby group opposed to levies on storage media has already been setup, and includes powerful names such as Apple, Samsung, HP, Canon, Dell and Sony among its members.

Arguing against the imposition of levies, the group warns that ‘innocent’ consumers could be forced to pay annual fees to access cloud services. Such a move would lead to “double taxation” on computers and mobile devices that consumers have already purchased and paid tax on.

Several European Union countries levy taxes on storage media, in order to compensate copyright holders for losses they incur due to piracy. However, the practice has recently come under scrutiny, with IT vendors and industry associations demanding that new forms of compensation be created to replace these fees. Vendors claim that alleged losses due to piracy of $51 million a year are “excessive” and “totally unfounded”.

For their part, copyright holders have insisted that the taxes are still justifiable, given the lack of alternative suggestions.

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Mike Wheatley

Mike Wheatley is a senior staff writer at SiliconANGLE. He loves to write about Big Data and the Internet of Things, and explore how these technologies are evolving and helping businesses to become more agile.

Before joining SiliconANGLE, Mike was an editor at Argophilia Travel News, an occassional contributer to The Epoch Times, and has also dabbled in SEO and social media marketing. He usually bases himself in Bangkok, Thailand, though he can often be found roaming through the jungles or chilling on a beach.

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1 Comment

  1. Such a great information about tax on cloud services.I read post this is also beneficial for others.Thanks and keep updating.

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