New 3% tax on large digital services companies

Automatic summary, not yet reviewed

1. The Tax on Certain Digital Services is created, an indirect tax on three types of digital services: online advertising, online intermediation, and transmission of user data.
2. Only companies exceeding two thresholds pay the tax: worldwide revenue above €750 million per year and revenue from these digital services in Spain above €3 million. For groups of companies, the thresholds are calculated using the figures for the whole group.
3. The tax applies when there are users located in Spain. To determine this, the law generally looks at where the user's device was, based on its IP address or other geolocation means.
4. The tax base is the revenue from these services in Spain, excluding VAT, and the rate is 3%. The tax is filed every quarter.
5. The tax does not apply, among other cases, to direct online sales by the seller itself, regulated financial services, and transactions between companies in the same group with 100% ownership.
6. Failing to locate users' devices, as the law requires, is a serious offense with a fine of 0.5% of the previous year's revenue, with a minimum of €15,000 and a maximum of €400,000 per year.

Who it affects

• Large companies providing digital advertising, intermediation, or data transmission services to users in Spain: They must pay 3% on their Spanish revenue, file quarterly tax returns, and meet several formal obligations.
• Small and medium-sized companies and startups: They are outside the tax because they do not exceed the revenue thresholds.
• Companies not established in the European Union: They must appoint a representative in Spain to meet the tax obligations.
• Regulated financial entities: Their financial services and their data transmissions are not subject to the tax.

Words worth knowing

Base imponible (tax base)

The amount of money on which the tax is calculated, in this case the revenue from the taxed digital services.

Devengo (accrual)

The moment when the obligation to pay the tax arises, here when the service is provided.

Autoliquidación (self-assessment)

The form in which the taxpayer itself calculates and pays the tax it owes.

Interfaz digital multifacética (multifaceted digital interface)

A website or app that lets different users interact with each other, like a platform where buyers and sellers meet.

Cifra de negocios (revenue)

A company's total income from its activity during a period.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries