The Spanish Tax Agency launches a campaign to request information to collect data on potential DST taxpayers

In February 2021, the Spanish tax agency launched a campaign to request information to collect data on potential DST taxpayers. The purpose of the campaign is to request precise information on the nature of services provided by digital companies, the turnover related to those services, and even the details of the recipients of those services.  The Spanish tax authority aims to have a reliable estimate of corporations liable to DST and of the expected tax collection that according to internal sources, will be higher than the DST collected in France.

In February 2021, the Spanish tax agency launched a campaign to request information to collect data on potential DST taxpayers. The purpose of the campaign is to request precise information on the nature of services provided by digital companies, the turnover related to those services, and even the details of the recipients of those services.  The Spanish tax authority aims to have a reliable estimate of corporations liable to DST and of the expected tax collection that according to internal sources, will be higher than the DST collected in France.

Background

The Spanish DST, effective as of 16 January 2021, targets certain digital services – online advertising, marketplaces and data transmission – provided by large multinational companies to users located in Spain. The tax rate levied on those services is 3%.

The DST applies to companies, resident in or outside Spain, that exceed the following two thresholds: (i) net turnover in the previous calendar year exceeds EUR 750 million, and (ii) income from rendering services subject to DST in Spain in the previous calendar year exceeds EUR 3 million. These thresholds are considered at a group level.

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