On 16 October 2020, the Spanish Official State Gazette published Law 4/2020, of 15 October 2020, on the Tax on Certain Digital Services (known as the ‘Digital Service Tax’ or, by its acronym, ‘DST’).
The Law was approved without any amendment to the Draft, which had been approved by the Spanish Parliament on 30 July 2020. The DST’s most significant aspects have been analysed in our previous alerts (click here).
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.
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