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Netflix assures that it will invoice its Spanish business in its own country from 2021



The fees that Netflix subscribers in Spain pay for the services they consume they will no longer be credited to the company's European parent company, which is based in the Netherlands, and will be entered into the Spanish accounts. From 2021.



As has advanced Five days and has confirmed the multinational entertainment company, this change will mean that the profit generated by its main activity in Spain is reflected in the taxation of the country's Treasury. Therefore, your accounts will change radically.






Netflix will tax its Spanish business in Spain after years of invoicing from the European parent company located in the Netherlands, with a tax treatment favorable to its interests




The subscription will be paid to Netflix Spain




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The American company has two companies in Spain, Los Gatos Servicios de Transporte España and Los Gatos Entertainment, both founded in 2018.



Through them, marketing services, public relations and production services are managed. The two published an income of about 540,000 euros and a net profit that did not exceed 9,500 euros in 2018, while Netflix entered more than 6,500 million euros in the Netherlands from the whole of the European business. 40% of your world income is declared there.




Soon the subscription will be paid to Netflix Spain and, in this way, the income generated in the country will be recognized










This way, millions of euros are saved in Netflix or Amazon taxes by paying taxes outside of Spain





Los Gatos Servicios de Transmission España, as explained by the medium that has advanced the information, went from being the limited company of that name to become Netflix Transmission Services Spain, SLU. In principle, according to what was communicated from the company, in the future it seems that the subscription will be paid to this Spanish entity relatively immediately and, in this way, the income generated in Spain will be recognized.



The decision is made public shortly after the presentation of the Draft General Law of Audiovisual Communication in which it is established that platforms such as Netflix would be obliged to register in a new registry of audiovisual service providers and that, through it, could receive requests from the authority the CNMC to know their real income in Spain. In addition, in a few days, next January, the so-called Google rate, the tax on certain digital services.