Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

January 20, 2021

Spain delays first reporting of Digital Services Tax and Financial Transaction Tax

The Spanish Digital Services Tax (DST) and Financial Transaction Tax (FTT) became effective on 16 January 2021.

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:

  • The deadline for the filing of the DST return and paying the tax of Q1 2021, which would ordinarily be due by 30 April 2021, is deferred to 31 July 2021. Accordingly, the Q1 2021 DST return must be submitted along with the Q2 2021 DST return.
  • The deadline for the filing of the FTT return and paying the tax of January and February of 2021, which would ordinarily be due by 20 February 2021 (FTT return of January 2021) and 20 March 2021 (FTT return of February 2021), respectively, are deferred to 10 - 20 April 2021. Accordingly, the FTT return of January and February must be submitted in the period in which the FTT return of March 2021 must be submitted, that is, by 20 April 2021.

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:

  1. Spain’s DST, by its structure and operation, discriminates against US digital companies, due, among others, to the selection of covered services and the revenue thresholds.
  2. Spain’s DST is unreasonable because it is inconsistent with principles of international taxation.
  3. Spain’s DST burdens or restricts US commerce.

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



The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.


Copyright © 2024, Ernst & Young LLP.


All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.


Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.


"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.


Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or Please refer to the privacy notice/policy on these sites for more information.

Yes, I accept         Find out more