Spain To Press Ahead With Digital Tax

by Ulrika Lomas, Tax-News.con, Brussels

25 July 2019

Spain's acting Economy Minister, Nadia Calvino, said the Government will seek approval of legislation to introduce a digital services tax at the earliest opportunity.

Speaking to Cadena Ser radio last week, Calvino said the Government intends to put the tax back on the agenda "as soon as possible," once a coalition government can be negotiated.

A DST was originally included in the Government's Budget Bill for 2019 in January this year. However, the bill was rejected by parliament, triggering elections in April 2019, which saw the incumbent Socialist Workers' Party gain the most parliamentary seats but fall well short of securing an absolute majority.

Under Spain's earlier proposal, which is similar in scope to the recently approved French DST, a three percent levy would be imposed on companies with total revenues of EUR750m (USD841m) and with sales from digital services of at least EUR3m in Spain. It would cover revenues from the sale of online advertising, intermediary services, and the sale of user data.

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