Google provides advertising prices

Google provides advertising prices

The technology giant Google has decided to raise in Spain by 2 percent. advertising prices - according to the findings of the daily "El Mundo." In this way, the company wants to recover the funds that the government of Pedro Sanchez has imposed on it since January under the so-called digital tax.

According to the findings of the newspaper published in Madrid, as early as May 1, the cost of advertising with Google will be 2 percent higher. The daily indicated that the increase is a direct consequence of the new tax, which was confirmed by the representatives of the American company.

"El Mundo" also notes on Wednesday that supporters of charging Google and similar companies with a tax on certain digital services, commonly known as "Google tax" or "digital tax", were - in addition to socialists - left and extreme left groups in the Spanish parliament.

During the parliamentary debate, some MPs from the opposition groups: the centre-right People's Party (PP), the conservative Vox and the liberal Citizens' Party (Cs) pointed out that large advertising companies already pay VAT and CIT in Spain. MEPs from these groups warned against the specter of increasing the value of advertising by internet giants such as Google.

The Google tax entered into force in Spain on January 1, 2021. This tax is 3 percent. on the annual revenue generated from advertising, online consulting or database sellers

The new tax applies to companies which in Spain generate an annual turnover of EUR 3 million or - when their global revenues reach EUR 750 million. 

Pedro Sanchez's center-left government, on whose initiative the new tax was approved in October 2020, estimates that the state will gain more than EUR 1 billion during the year. (PAP)

Read also