Spain: Bill implementing DAC7; VAT, income tax, and FATCA implications for finance and insurance industries

New reporting requirements for digital platform operators

24 May 2023

A bill implementing European Directive 2021/514 (DAC7)—which would introduce new reporting requirements for digital platform operators effective 1 January 2023—was approved by the Lower House of the Spanish Parliament on 18 May 2023.

The bill also includes other tax changes that would affect the finance and insurance industries:

The amendment of the “use and enjoyment” rule for value added tax (VAT)
The amendments to the limit on the corporate income tax deductibility of finance expenses
Modifications to FATCA, common reporting standard (CRS), and DAC6 reporting obligations

The next step—expected in the coming days—is publication in the Official State Gazette.

Read a May 2023 report [PDF 511 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.