On January 25, 2019, a bill on the digital service tax was published in the law sheet of the Spanish legislature. If adopted, it is expected that the bill will be applied in the second half of 2019.
The digital services tax would apply to taxpayers providing digital services, including online marketing services and online brokerage services. The tax would also be levied on services that allow third parties to contract and conclude supplies and services or data transmission.
The thresholds for the application of service tax are as follows: (i) the total net turnover of the company in the calendar year exceeds EUR 750 million, (ii) the total revenue from rendering digital services (subject to the tax) in the previous calendar year exceeds EUR 3 million ,
For a company that is part of a global group, the threshold of EUR 750 million refers to the global group and would be calculated in accordance with Council Directive 2016/881 (25 March 2016) and the relevant provisions of OECD. The threshold of EUR 3 million would only apply to the company and would therefore be calculated without taking account of the exclusion of taxable services when they are provided between companies belonging to a same group of entities.
The tax rate would be 3% and applied to the revenue (excluding VAT) generated by the taxpayer through the provision of taxable digital services in Spain.
