The British Treasury has established a tax on digital services, which will enter into force on April 1, 2020.
The UK digital tax will levy companies whose activity relates to search engines, social media platforms or online sales platforms. It includes any company of this type that exceeds the annual global turnover of 500 million pounds sterling and more than 25 million pounds sterling come directly from the turnover in the United Kingdom.
The tax has been set at 2% and aims to raise more than 445 million euros per year for public coffers. The Government has clarified that this bill aims to collect taxes from solvent companies and not endanger businesses with little profit margin.
In the spotlight, once again the American multinationals (Amazon, Apple, Facebook, Google), which invoice a millionaire figure globally and only pay taxes at European level in countries with low fiscal pressure.
The most sustainable long-term solution to the challenges posed by taxes on digital activities is to reform international tax rules and support the discussions of the different reform proposals of the G7, G20 and the OECD. This is reflected in the official text of the bill.
For its part, the Government has already announced that it is committed to repealing the digital services tax once there is an appropriate solution at the international level. In VAT Consultation we keep you up to date with the most important tax developments in Spain and Europe. If you don’t want to miss anything, subscribe to our blog and every news will reach you directly in your inbox.