Spain: VAT proposals in draft 2023 budget law

Description of VAT measures in draft budget law

Description of VAT measures in draft budget law

The “draft 2023 budget law” provides for a range of value added tax (VAT) measures, the majority of which would become effective 1 January 2023.

The VAT measures are described as follows (and in further detail at the link below):

  • An amendment to the “use and enjoyment rule”—on the place of supply of certain services—would provide different rules depending on whether the services in question are rendered to VAT entrepreneurs and professionals or to private individuals.
  • Certain aspects of the rules and procedure for the recovery of VAT on bad debts would be amended to better align the Spanish VAT Law with European legislation and case law.
  • The scenarios in which the reverse-charge mechanism for VAT applies would be amended.
  • Other amendments concern VAT on e-commerce; limits for application of the simplified regime and the special regime for agriculture, farming and fishing; technical adjustments to adapt the Spanish VAT law; and intra-EU supplies and acquisitions of goods and services and imports of goods and their application by the armed forces.

Read an October 2022 report [PDF 531 KB] prepared by the KPMG member firm in Spain


The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.