The bill would adapt VAT to the digital age

Automatic summary, not yet reviewed

1. The bill would amend the VAT Law to partially incorporate Directive (EU) 2025/516, known as the ViDA Directive, which adapts the tax to the digital economy. The rules it covers would enter into force on January 1, 2027.
2. It would expand the taxation of supplies of goods made through a digital interface to also cover sales to businesses or professionals carrying out operations not subject to VAT, meaning operations with no right to deduct it.
3. It would adjust the 10,000 euro threshold for intra-EU distance sales: only sales made from the member state where the business is established would count toward it, and the option to tax at destination could only be exercised in that state.
4. It would exclude operations under the non-Union scheme and the Union scheme from the special cash accounting scheme, and would extend the non-Union scheme to services supplied by businesses not established in the EU to final consumers who are also not established there.
5. It would require businesses and professionals not established in the EU to appoint a representative to obtain refunds of VAT paid in Spain, and would clarify that internet sites only need to be reported under the Import scheme when they exist.
6. It would add two transitional schemes: consignment sales of goods would extend their effects until June 30, 2029, and supplies of gas, electricity, heat or cooling through networks could use the Union scheme until June 30, 2028.

Who it affects

• Businesses and professionals selling online to other EU countries: The rules for the 10,000 euro threshold and the one-stop-shop special schemes would change.
• E-commerce platforms and digital interfaces: They would also have to account for VAT on sales to businesses making operations not subject to VAT.
• Businesses and professionals not established in the EU: They would have to appoint a representative in Spain to request refunds of VAT paid.
• Companies selling gas, electricity, heat or cooling through networks: They could temporarily use the Union scheme until June 30, 2028.

Words worth knowing

IVA

Impuesto sobre el Valor Añadido: Spain's value added tax (VAT), paid when buying goods and services.

Ventanilla única

One-stop shop: a system letting a business declare and pay VAT for the whole EU through a single registration in its own country.

Ventas a distancia intracomunitarias

Intra-EU distance sales: goods shipped from one EU country to a buyer in another EU country.

Sujeto pasivo

The person or business liable to pay the tax, usually the selling business.

Régimen especial de caja

Cash accounting scheme: a VAT scheme where the tax is paid when the customer actually pays the invoice.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries