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

New reporting requirements for digital platform operators

New reporting requirements for digital platform operators

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


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