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
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