EU: CJEU referral of Spain for failure to transpose two VAT directives

VAT directives relating to SMEs and special scheme for second-hand goods, works of art, collectors' items, and antiques

The European Commission (EC) yesterday announced that it has decided to refer Spain to the Court of Justice of the European Union (CJEU)—requesting the imposition of financial sanctions—for failing to transpose the following two directives related to value added tax (VAT) measures into national law:

Council Directive (EU) 2020/285 on VAT rules applicable to small and medium enterprises (SMEs)—although application of the VAT exemption for SMEs is optional for member states, the provisions that allow SMEs established in Spain to apply the exemption scheme in other member states must be transposed
Council Directive (EU) 2022/542 providing several mandatory rules regarding:
- Place of supply for VAT purposes of certain services when they are streamed or otherwise made virtually available
- VAT special scheme for second-hand goods, works of art, collectors' items, and antiques

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.

Relevant Results

EU: CJEU referral of Spain for failure to transpose two VAT directives

Contact KPMG

Headline