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Spain Digital Services Tax implementation

Spain has gazetted its resolution to implement its 3% Digital Services Tax. This levies a charge on non-resident digital platforms for their income received in Spain on the sale of digital advertising and user data.

VAT Calc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.

Spain follows old EU DST proposal

There are two thresholds to be subject to the new Spanish levy:

  1. €3million Spanish income; and
  2. €750million total global income

The Ministry of Finance and Public Administration gazetted the tax on 29 June. It comes into force for the financial year 2021. It follows the UK and French implementations. These countries, and around 130 around the world have signed up to the OECD two-pillar settlement on digital taxes, which would replace DST’s.

The EU has paused its new Digital Services Levy subject to progress on the OECD model.

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