Government approves and taxes on games can rise in Spain

Due to the approval of PIS/Confins tax changes for license distribution and use of imported software, games may become more expensive. The information came from the newspaper Valor Econômico, where it was said that instead of charging the current 3,6% of taxes, the government will now charge 9,25%.

The federal government says it has seen reasons to tax cloud technologies and other forms of program delivery. Law No. 10.833, of 2003, was discussed, where taxes on computer services currently have a lower rate. In this same law, in the second paragraph, there is a divergence regarding downloads and technologies, where there is no physical product transiting between countries. There, there is no clarity about the non-taxation of 3,25%, with gaps to charge 9,25%.

"Art. 10 They remain subject to the rules of the COFINS legislation, in force prior to this Law, and the provisions of arts. 1 to 8 do not apply to them.

"XXV - Revenues earned by computer services companies, arising from software development activities and their licensing or assignment of right to use, as well as analysis, programming, installation, configuration, advisory, consulting, technical support and maintenance or software update, also understood as software the electronic pages"

It appeared in the Union Gazette! Bolsonaro reduces tax on video games and their accessories

It is still necessary to wait for new cases on the matter before taking any action.

According to the Attorney General of the National Treasury (PGFN), in response to a question from Valor Econômico, "it is necessary to wait for new cases on the matter to assess how the jurisprudence [set of decisions that serve as an interpretation for other processes] will be established and for which situations the provisions of paragraph 2 of article 10 of Law 10.833 of 2003 apply". This law is responsible for discussion in the Council and defines how COFINS (Contribution for the Financing of Social Security) is collected. In the paragraph quoted by the PGFN it is published:

"§ 2 The provisions of item XXV of the caput of this article do not cover the commercialization, licensing or assignment of the right to use imported software."

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