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Digital Business Tax Introduced in Spain

Some say that digital businesses have an easy time of it, in regards to tax. Many say they fly under the radar and don’t pay much at all.

Regular readers of this blog will be well aware of digital companies such as Google, Apple, Amazon and Microsoft. They pay almost no tax, despite making billions.

This is true all across the European Continent…not just in the UK.

So what is Europe going to do about it? Well, it is the country of Spain who are pulling out their big guns and getting ready for war.

The Spanish Finance Ministry have just announced plans to introduce a new “digital tax” that will apply to any business with a digital platform.

For example, Uber and Airbnb are two companies who get most of their customers from the internet, and up until now this has allowed them to pay only a small amount of tax, despite being multi-million pound companies.

Maria Jesus Montero, who is the Finance Minister of the Socialist Party of Spain (PSOE) had this to say – “We are going to look at appropriate tax treatment for this not-so-recent phenomena of the collaborative economy, particularly in the accommodation and transportation sector.”

She certainly seems to have it all figured out. No doubt they all sat round a fire at Socialist Summer Camp and worked out ways to get more tax out of digital companies.

Of course, the country of Spain is notorious for hounding companies and individuals for income tax.

Who can forget Lionel Messi and his “messy” situation. He had to pay a lot of money to the Spanish government to get out of that one.

The same can be said for whizzkid Ronaldo, who also had to write out a cheque in the millions to avoid the prison in Madrid.

Jose Mourinho was also in trouble and they even convicted the Man Utd boss of fraud, although he got off with a slap on the wrists. “Don’t do it again, Amigo,” they said.

And then there is our main man Wayne Rooney. When he got his move to Washington DC he asked Coleen what “DC” stood for?

“District of Columbia,” she replied

“I better start learning Spanish then,” he said.

So while our main man Rooney is sorting out his “Hola’s” from “Adios’s,” The Spanish Government is planning to start taxing digital companies like any other company.

Will the UK follow suit? My guess is…yes, which means if you own a digital business then you should hire a contractor accountant right away.

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