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Spain VAT updates in budget – bad debt reform

2023 Budget VAT changes to bad debt relief; EU VAT Directive harmonisation; feminine hygiene products

The Spanish 2023 Budget has been presented to Parliament and includes a number of VAT changes.

Learn more about Spanish VAT in our country guide.

The Value Added Tax changes which come into effect on 1 January 2022 include:

  • Improve the terms for bad debt relief
    • Lowering the reclaimable minimum threshold from €300 to €50
    • Extend relief to customer invoices outside of Spain to those included in EU insolvency proceedings regulation
    • Extend from 3 to 6 months the period for correction invoice
  • Extending the domestic reverse charge rules to the supply of waste, scrap, or plastic trimmings and (ii) waste or unusable rags, cords, ropes, or cordage
  • Updating the rules to align with the EU VAT Direct on effective use and right to deduct for the means of transport and financial services
  • Reducing VAT rate on feminine hygiene products to 4% from 6%


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