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"
- Spain Finalizes B2B e-Invoicing Mandate: Key Dates, Requirements, and Compliance Under Royal Decree 238/2026
- Spain Opens Draft E-Invoicing Order for Public Consultation; Compliance Deadlines Set Through 2029
- Spain Supreme Court Rules on VAT Deductions for Mixed Holding Companies’ Intragroup Share Transfers
- Spain Publishes Royal Decree Mandating B2B E-Invoicing, Sets Phased Implementation Timeline
- Spain Clarifies VAT on Crypto Exchange Services and Tax Base for Plastic Packaging Tax
