French lawmakers recently inserted AI subscription charges and token-related costs into amendments to the country’s 2027 budget bill, but those proposals have now been rejected and none has taken effect.
The push came as France faces a widening fiscal gap. The country’s budget deficit is projected at 5.4% of GDP this year, above the European Union’s 3% ceiling, and public debt is expected to rise to 121.7% of GDP next year. The government is seeking a €54 billion budget adjustment.
France’s budget squeeze has widened the tax debate
According to a roundup by Touteleurope, the government’s own budget plan already includes new tax bases covering aviation kerosene, sugary processed foods, and a rise in value-added tax on television subscriptions from 10% to 20%. Against that backdrop, AI subscriptions also became a target for proposed taxation.
The report points to two earlier amendments that had already drawn attention. On Oct. 16, an amendment to tax gains from converting cryptocurrencies into stablecoins at 31.4% passed by a 38-37 vote. On Oct. 30, a traffic tax of €0.055 per GB passed by an 11-10 vote. Backers of that proposal estimated annual revenue of €10 billion, and an excess dividend tax also cleared at the same time.
None of those measures is law at this point. They were amendments adopted during the first reading of the 2027 budget bill in the National Assembly, and passage at that stage only meant they remained in the Assembly’s version of the text. They were not final.
How the AI subscription tax and token cost proposals were written
The first was Amendment No. 2290. It would have taxed spending by companies with more than 250 employees in France when they bought, rented, or subscribed to AI services. The text did not specify a tax rate. Lawmakers in charge of reviewing the budget said the measure could be blocked as unconstitutional. It was rejected on the spot on Oct. 30, and the government opposed it as well.
The second was Amendment No. 1670. It proposed a 1% tax on the portion of annual spending on AI and robots above €100,000. The calculation would also include token costs, described in the report as the billing unit used by AI models.
The third was Amendment No. 952. It would have taxed companies selling AI services by extending France’s digital services tax to AI. The explanatory text specifically said OpenAI and Claude are not covered under the current scope.
The second and third amendments were also rejected in the finance committee.
No AI tax measure has taken effect
As things stand, none of the proposals covering AI subscriptions, token charges, or taxes on AI vendors has become effective. Even if such measures were eventually adopted, they would apply only in France.
Still, the sequence of amendments shows that taxes tied to crypto transactions, network traffic, subscription services, and AI spending are now being debated in concrete budget language rather than in abstract terms alone.
