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%