Extension of reverse charge for certain domestic and non-resident transactions
The Spanish General State Budget Law for 2023 has extended the use of the reverse charge, which shifts the VAT reporting obligations from the supplier to the customer.
Domestic reverse charge – Art 199 EU VAT Directive
Under Art 199 of the EU VAT Directive, member states may remove VAT cash payments in certain fraud-sensitive sectors. The use of the reverse charge means the customer does not have to charge, collect and remit the VAT on domestic transactions in Spain.
From 1 January 2023, this is extended to scrap, plastics, and material waste. This is added to:
- carbon emission rights;
- mobile phones;
- consoles for video games; and
- computers and tablets.
Learn more about Spanish VAT in our country guide.