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
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