On 23 October 2018, the Spanish Treasury opened public hearing proceedings on the draft bill on Digital Services Tax, which creates a new tax, the main characteristics of which are as follows:

  • Taxable event: the new tax is levied on;
    • Online advertising services
    • Online intermediation services offering users with a multi-sided digital platform allowing them to: (i) facilitate direct delivery of underlying goods or services directly between users or (ii) reach other users.
    • User data transfer services generated through the activities users carry out on the digital platform.
         
  • Exempt are: i) online advertising services when the only or sole purpose is to provide digital content to users or provide them communication or payment services; ii) online advertising services
    and data transfer services provided by a “trading venue”, a “systematic internaliser” or “regulated crowdfunding provider” (Directive 2014/65/EU).
        
  • Taxpayers: taxpayers exceeding the following two thresholds (calculated at group level):
    • Net turnover in the preceding calendar year in excess of 750 million euros; and
    • Total amount of income subject to Spanish digital tax, corresponding to the previous calendar year, greater than 3 million euros.
         
  • Tax base: calculated on the gross income, excluding indirect taxes, obtained from the provision of digital services to users located in Spain. There are special rules for calculating this income.
       
  • Tax rate: 3%.
       
  • Formal obligations: Declarations will be submitted on a quarterly basis. A specific regime is established for formal obligations, infringements and penalties.

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