Despite the controversy that the so-called “Google Rate” has been generating since its implementation began in Europe, it seems that this digital rate will continue in Spain regardless, and the Executive has already announced that it will be implemented even if no agreement is reached with the EU.
The Google rate was raised by the European Commission as a kind of tax to tax the activities of large technological multinationals, so that companies pay taxes where they develop their activity. Spain was one of the drivers of the measure and, in 2018, the Government approved the draft of the law on the new tax on Certain Digital Services.
The measure should be implemented progressively in all EU countries, however, so far no agreement has been reached. Nadia Calviño, Minister of Economy of the Sanchez government, has already announced that the government’s intention is to approve the Google rate in Spain as soon as possible: “Ideally, a global agreement should be reached; and, failing that, to a European agreement. Only if an agreement is not reached in these two areas will we have to act at a national level, ” the minister said.
This digital rate is intended to raise 1.2 billion annually, from applying 3% tax to online advertising services or the sale of data, from companies such as Facebook, Amazon, Apple or Google.
The announcement of the implementation of the rate has not sat well at all in the United States, where it is considered that its companies are being treated unfairly. The Trump administration itself, through the US Department of State, has already sent a statement to its embassies to warn of possible reprisals to all countries where this tax could be applied: “The Trump administration will not stay with its arms crossed or tolerate any discrimination against US-based companies.”