Spanish Digital Services Tax Act

After the conclusion of the parliamentary approval process, on October 16th, 2020, Law 4/2020, of October 15th , on the Tax on Certain Digital Services was finally published in the Official State Gazette (“BOE”). The Law will enter into force three months after its publication in the BOE, on January 16th, 2021.

The Digital Services Tax (DST) is an indirect tax applicable in all Spanish territory and applies to the provision of certain digital services with the intervention of users located in the territory of application of the tax. Below we refer to the main characteristics of the new tax in the corresponding alert, which can be accessed through the following link:

Click here to read the Alert

Although it is a unilateral measure, the provisional nature of this new tax is indicated in the preamble of the Law until the consensus solution at global level is agreed through the OECD Inclusive Framework project on the Digitalization of the Economy.