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ATA Files EU Complaint Over Spain’s Failure to Apply VAT Exemption for Small Businesses

The group says Spain missed the EU’s transposition deadline, with the simplified regime due to take effect from January 2025.

Overview

  • ATA submitted a complaint to the European Commission alleging Spain has neither transposed nor applied Directive (EU) 2020/285 on the small‑enterprise VAT “franchise” regime.
  • The directive allows member states to exempt self‑employed workers and SMEs with annual turnover up to €85,000 from charging, filing and paying VAT.
  • ATA says Spain has adopted no legislation to create a general franchise scheme or set an income threshold despite EU deadlines of December 31, 2024 for transposition and January 1, 2025 for implementation.
  • ATA president Lorenzo Amor argues the failure disadvantages Spanish freelancers versus their EU counterparts and increases administrative burdens.
  • The group claims Spain is the only EU country where those earning under €85,000 cannot use the franchise regime, citing legal uncertainty from missing control and registration procedures.