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B Law & Tax
16 October 2023

Tax advisor: The New VAT for Self-Employed Professionals

The Value Added Tax (VAT) is one of the most well-known and demanding taxes in Spain, posing a particular challenge for self-employed individuals. Maintaining an accurate and legally compliant record of all fiscal transactions has become essential. Here, we present the significant innovation in the lives of self-employed individuals that will transform the perception of VAT.



A significant number of self-employed individuals will be able to forgo adding VAT to their invoices, marking a turning point in their tax situation. This change is made possible through a new regime specifically designed for these professionals, aimed at easing their tax burden.

The Tax Agency has established a timeline for the implementation of this innovative fractional VAT system. Its primary objective is to reduce the tax burden on self-employed individuals who earn less than 80,000 euros per year. This achievement has been the result of intense negotiations between the Tax Office, self-employed organizations like ATA, labor unions, and business associations over several months.

The new fractional VAT system will be implemented in three stages, one per year, with full implementation expected by 2025. In addition to reducing the financial burden on self-employed individuals, this regulation will significantly simplify bureaucracy by reducing the amount of documentation required for professionals who generate less than 85,000 euros annually (or 100,000 euros for activities within the European community). Self-employed individuals will only need to submit an annual sales declaration to demonstrate their compliance with the limits that exempt them from including VAT on their invoices.



In addition to the introduction of this new franchised VAT regime, efforts are underway to eliminate the unpopular objective estimation system, which has been a source of widespread discontent among the majority of self-employed individuals. While specific dates have not been established yet, it is anticipated that this change will be carried out in coordination with the implementation of the new regime, marking a new era for self-employed individuals, although there is still a long way to go in improving their overall conditions.


B Law & Tax International Tax & Legal Advisors.


“En B LAW&TAX somos especialistas en asesoramiento fiscal internacional tanto a empresas como para particulares. Si desea ampliar la presente información, estaremos encantados de poder atenderle en el 917817194 o en info@blaw.es