Since the so-called (also called Google rate), that imposes new taxes on large technology companies we have experienced a great stir, both due to the adverse reaction of the United States, being the headquarters of most of the affected technology companies, and because it was speculated that this tax would have repercussions in the pockets of the clients.
Spain launched the Google Tax on January 16, following the example that it started from 2019 and the big ones of the internet have started to take their position on it. the last of them, Google Spain, who has decided to impose a surcharge of 2% to its clients who want to hire digital advertising in Spain and France.
Google will charge an additional 2% to its advertising clients due to the Google Tax
Amazon was the first technology giant to react to the official name of the Google Rate in Spain. The company reported a few days ago that as of April 1, 2021 for products sold in Spain. Thus, for example, in the case of a product whose total sale price is 100 euros and whose rate is 15%, the new rate will be 15.45%, so the seller will pay 15.45 euros for that product
Google has decided to follow suit and transfer this extra cost to your customers who use your Google Ads platform, however in your case the cost will be 2% on invoices for ads served in Spain, that is, it will be imposed on all customers who, inside or outside the country, sign an advertising contract with Google Spain, as well as in other countries such as France where the Google Tax is already applied, and is similar to other taxes implemented by Google in (2%), Austria (5%) and Turkey (5%) since November last year.
“These surcharges they will be included in your invoice or statement as a separate item per country”and will enter into force on May 1, the internet giant assured in its statement.
Google Spain justifies this extra charge to advertisers because “taxes on certain digital services increase the cost of digital advertising”.
Google will only charge 2% to its advertising clients and not the 3% that is the rate required by the government for which the company assures that it will continue “Paying all the taxes that correspond to us, both in Spain and in the rest of the countries in which we operate”, in addition to encouraging governments globally to “carry out an international tax reform instead of implementing unilateral taxes”.
Greater clarity on Google taxes?
Like many other technology companies, Google maintains its operations in Spain under a Dublin-based tax structure. After some tax adjustments, the company has had to face two extraordinary payments, for 3 million euros.
Meanwhile, most of the countries of the European Union that it will force multinationals to make public the size of their business in each member state, as well as the payment of taxes. This new regulation will apply to those companies with activity in the area and with annual revenues of more than 750 million euros.
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