[zosi]

What you're saying is that if I click on an ad, and that click results in a company in a completely different country paying another company in another completely different country a certain sum of money, that my government should be able to tax that? There is no money entering or leaving France when a French person clicks on a Google ad. The French government has no business whatsoever trying to tax online advertising revenue that occurs due to transactions in other countries.

[joubert]

Aren't the ads displayed in a particular country from companies that operated in that country? When the user clicks on the ad the (French-based) company is charged by Google (i.e. the company advertising has now transacted, and according to tax origination principles, most likely that would be interpreted as having occurred in France).

See my other comments in this thread about the Amazon advertisers cases in California and New York, for a similar situation.