Large technology companies such as: Google, Amazon and Apple, have been the protagonists in the media in recent days and today, they are heard everywhere thanks to the so-called “Google tax”, which is nothing more than a tax on digital services.
This phrase, misnamed “Google Rate”, has been taken into account by various countries such as: Spain, France, the United Kingdom, Italy, Saudi Arabia and others. This tax goes directly to technology services companies “that exceed 750 million in worldwide turnover and 3 million in Spain, with a tax rate of 3% for these companies.”
Although their debate began a few months ago, it is said that said “Google Rate” is created, because the tax-earnings relationship of large companies such as Google, Amazon and Apple, are not in one way or another congruent, since, “in the case of Google in the United Kingdom, income of about 1,600 million pounds is reported, but only 44 million are paid in taxes when declaring low profits”. As the xataka.com web portal expresses, that is, the government alleges that they pay very little taxes in relation to what the organization generates.
In this sense, companies such as Amazon, Google and Apple, have also announced the increase in their service rates as a reaction to the implementation of the tax on digital media or “Google Rate”. In the case of Google in the United Kingdom, they announced that from November their ad services on YouTube and Google will have an increase of 2%.
In the case of Apple, it announced that in countries such as Mexico, Chile and Turkey, prices will increase with respect to app’s and in-app purchases that correspond to the App Store. On the other hand, in Europe the increase in the new rates will also be applied, where it will be the developers who are affected with respect to the new rate. In both France, the United Kingdom and Italy, the new tax will be 3%, the difference is that in the case of France and the United Kingdom it includes VAT of 20%, while in Italy, VAT is 22%.
Lastly, we talk about Amazon, which is also part of the large technology companies that increase their rates to 2% in their services, which is aimed at external sellers and everything that involves logistics and warehousing. This adjustment has been in progress since September 1.
It only remains to wait, if other countries join the “Google Rate” and we will see which will be the next companies that will join Apple, Amazon and Google in this task. Who will be the most affected in the end?
