Spain Legislates For Digital Services Tax

11/03/2020

The Spanish Government has published the draft bill to introduce a digital services tax in Spain, beginning the formal parliamentary process needed to introduce the measure.

Approved by Spain's Cabinet on February 18, 2020, the proposed digital services tax would apply at a rate of three percent on certain digital services provided by companies with total annual turnover of EUR750m (USD857m) and Spanish revenues from such services of EUR3m.

The tax would apply to sales derived from the provision of online advertising services, online intermediation services, and the selling of user data.

Those liable for the tax would not be required to make their first payment until December 20, 2020, in order to allow time for countries to agree on a common digital tax framework under the leadership of the OECD.

The draft bill was published in the official gazette on February 28, 2020, and is unchanged from the proposals approved by the Government on February 18.

Source: Pride Partners International