Summary:
- On 16 October 2020, the Spanish Official State Gazette published Law 4/2020, of 15 October 2020, on the Tax on Certain Digital Services
- The DST will apply to services where a user’s participation in a digital activity constitutes input for a business and such activity enables that business to obtain revenues from it.
- The scope of the DST is determined by a double turnover threshold: an annual worldwide revenue over €750 million and more than € 3 million Spanish sourced income from digital services.
- According to the final text, the DST enters into force three months after its publication in the Official State Gazette, which means that it will come into force on 16 January 2021. Consequently, the first assessment period will be the first quarter of 2021.
- However, since the regulations on the DST Law have not yet been approved, not even in a draft version, there are no guidelines to help businesses deal with this new tax.
Source WTS
Latest Posts in "Spain"
- VAT Exemption Code 9022 for Special Regime Operators with Global Guarantee
- VAT IT eezi webinar – European E-Invoicing Spotlight: Greece, Poland, Croatia & Spain (Nov 27)
- Understanding Spain’s Royal Decree 1007/2023: Digital Billing Records and Fiscalization Compliance
- Restored VAT Rates Boost Spain’s Revenue by €1.67 Billion Amid Strong Economic Growth
- Verifactu: progress in digitalization or new burden for companies?
