Spain Moves Forward with Digital Tax Despite U.S. Tariff Threat

Spain’s digital services tax passed a parliamentary vote on Thursday, despite the threat of retaliatory U.S. tariffs.

Some opposition parties were concerned about the bill’s unilateral character, the timing of its introduction given the pandemic, and the impact U.S. trade sanctions could have on key Spanish industries. But they failed to secure the votes needed to block the proposal’s passage through the Lower House. The left-leaning coalition government won the vote 198-148.

• Spain is among several European countries considering a unilateral digital services tax, pending an international solution.
• The tax, approved by the government earlier this year, ...