The new Tax on Digital Services, the so -called “Google tax”, will enter into force on January 16, 2021, with the purpose of levying the rendering of services identified as “digital services”.

Its scope is expected to be limited as only companies with a turnover exceeding 750 million euro in the preceding calendar year may be subject to it.

The new Spanish Google tax

The purpose of this new tax is levying transactions generated in the digital economy while at the same time avoiding a preferential treatment that unfairly penalises traditional businesses. The approval of this new measure takes place when an international agreement within the OECD and G20 is still pending approval, and while Spain seeks adapting its tax system to the new areas of digital business.

✔ This qualifies as an indirect tax that levies the granting of digital services when users located in the territory (the whole Spanish territory) intervene. The following are identified as “digital services”:

  • Online publicity services: publicity inserted in a digital interface (any program, application or any other mean which is accessible to users, that permits digital communication) intended for such users.
  • Online intermediary services: Putting the multifaceted digital interfaces at the disposal of users, permitting them locating other users and interact with them and even facilitating underlying products or services delivery directly between users.
  • Data transfer services: the transfer, including sales or grants, of users’ data collected from activities developed by the users in digital interfaces.
New Double Taxation Treaty with Argentina

Product or service online sales through the supplier’s web page, when the supplier does not intermediate, are excluded.

✔ A service is deemed to take place in the subject to tax territory when any user is located within this territorial area, irrespective of whether it has paid or not any consideration.

✔ Companies whose net turnover in the preceding calendar year exceeds 750 million euro and whose total revenue deriving from digital services subject to tax in the preceding calendar year exceeds 3 million euro qualify as taxpayers.

✔ The tax rate is 3% and it applies on income obtained from the digital services in the Spanish territory, excluding VAT.

✔ This tax shall accrue for each rendering of the service and it will be declared on a quarterly basis.

✔ It is worth mentioning that the wording of this measure foresees its transitory Spanish unilateral nature up until new rules incorporating the solution that may be adapted internationally come into force. It also anticipates that it may be changed by the Spanish Budget Law in order to introduce and modify the necessary rules so as to accomplish any obligation deriving from EU regulations.


Publicado el 10-2020 por PBS