The end of the obligation for the self-employed to declare VAT every quarter is approaching. The Spanish Ministry of Finance is already working with self-employed associations on a text to transpose European Directive 2020/285, which came into force on February 18, 2020, and which allows eliminating this obligation for self-employed workers who invoice less than 85,000 euros per year.
Europe obliges EU countries to implement this measure by January 1, 2025. However, it is common for States, including Spain, to delay in transposing the rules, assuming the corresponding sanctions from Brussels.
At the moment, in the absence of an official text in our country, the European regulations propose the option that self-employed workers with incomes of less than 85,000 euros can choose between the general VAT regime (the current one) or take advantage of the special VAT exemption regime, which would imply that they do not have to include this tax in the invoices they issue nor, therefore, declare it. To benefit from the franchise, self-employed persons may not have exceeded 85,000 euros in turnover in the calendar year prior to the application. However, the Directive allows the States to extend this period to the previous two calendar years.
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Hi can you send me more information about the new iva laws in spain please
Below is an up to date, structured overview of the main IVA (VAT) rules in Spain, focusing on changes already in force (2025) and major reforms coming into effect in 2026 and beyond. I’ve separated substantive tax changes (rates, scope) from compliance and reporting reforms, which is where most of the real impact lies.
VAT RATE CHANGES EFFECTIVE FROM 1 JANUARY 2025. Royal Decree Law 4/2024 (26 June 2024)
Spain’s temporary anti inflation VAT relief ended on 31 December 2024, so from 1 January 2025 the following rates apply to basic foodstuffs (bread, flour, milk, cheese, eggs, fruit, vegetables, legumes, cereals) 4% (previously 0–2%), olive oil 4% (now formally classified as an essential good) and seed oils and pasta 10% (up from 7.5%)
Electricity VAT returned to the standard 21% rate in 2025 and natural gas (TUR) also effectively returned to standard taxation
DIGITAL VAT REFORM: The biggest change (2025–2026). These are not about rates, but how VAT is reported and controlled.
A. Spain is implementing mandatory B2B e invoicing under Law 18/2022 (Crea y Crece), with a phased rollout. Expected deadline from most businesses and autónomos will be 2 years after approval.
B. PDF invoices by email will no longer be sufficient, invoices must be issued through VERI*FACTU (Royal Decree 254/2025 anti fraud invoicing systems) and it has been postpone until 2027 and invoicing software must guarantee integrity and traceability, generate a QR code and unique fingerprint and prevent invoice alteration or deletion. Replacement of Modelo 349 with digital transaction reporting
What has not changed are the standard VAT rate remains 21%, the reduced rates remain 10% and 4%, no VAT registration threshold (still €0) and the core VAT law still Ley 37/1992, albeit heavily amended.
Antonio