The digitalisation of the economy requires changes in its taxation to guarantee equity and efficiency in the tax collection of the countries regarding globalisation of the economy. These reforms also require coordination amongst the countries in order for the measures to be effective, homogeneous, non-discriminatory and minimise the adverse effects on economic growth.

As a result, both within OECD and EU countries, a debate has been introduced and some proposals have been made at taxing certain digital services, however they are still at a very early stage.

The cost of a digital tax will be borne by consumers and small companies that use digital services:

  • Consumers will experience a loss of welfare between €515m and €665m due to the price increase.
  • Companies that use digital services will experience a loss of their operating profit of around €450m and €562m, due to the increase in costs and the fall in sales.
  • These will result in a negative impact of between €586m and €662m on GDP.

The ‘Economic impact of digital services tax in Spain’, report, conducted by PwC on behalf of AMETIC and Adigital, reflects on the economic impact of a digital tax on the Spanish economy. It proves the slowdown of the Spanish companies digitalisation process within the long-term will result in the Spanish economy being less productive, less innovate, less entrepreneurial and consequently, less competitive globally.