January 20, 2021
Spain delays first reporting of Digital Services Tax and Financial Transaction Tax
However, the Spanish Tax Authority has published a press release on its website, announcing a deferral of the upcoming DST and FTT payment and submission deadlines. The deadline deferrals are:
Since the regulations governing both taxes are still in draft, it is expected that these measures will be implemented through the final version of said regulations.
US investigation on Spanish DST
On a separate note, on 2 June 2020, the United States (US) Trade Representative initiated an investigation of the Spanish DST which was published on 14 January 2021. The investigation claims that the features of Spanish DST are unreasonable, discriminatory and burdensome.
The results of this investigation indicate that:
While the above conclusions reached are aligned with the conclusions by the US on other jurisdictions that have unilaterally created the same digital tax, no retaliatory measures have been imposed as of the publication of this Alert. In addition, no official reaction from the Spanish Government or from the Spanish tax authorities has been released yet.
For additional information with respect to this Alert, please contact the following:
Ernst & Young Abogados, Madrid
Ernst & Young LLP (United States), Spanish Tax Desk, New York