The article discusses how adopting Article 59 bis of Directive 2006/112/EC would allow Spain to exclude from VAT the portion of charter fees earned in international waters, aligning its rules with France and Italy. Currently Spain applies a flat 21 % VAT to all charter fees regardless of itinerary. The author highlights the feasibility of implementing this measure using satellite geolocation for accurate itinerary certification.
It allows the exclusion from VAT taxable income of the part of the charter fee that occurs in international waters.
Spain applies the general 21 % VAT rate to 100 % of charter fees when the vessel is made available in national territory, regardless of itinerary.
France and Italy have already exercised this option, making it a differentiating element in their yachting offerings.
Article 70.1.9 of the VAT Law defines the location based on where the yacht is made available to the client.
Satellite geolocation solutions can certify the percentage of navigation time spent in international waters, ensuring traceability and legal certainty.
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International Tax Review · 3 days ago
The Court of Justice of the European Union, in Case C‑515/24, confirmed that Spain’s limitation on input VAT deduction for entertainment expenses is compatible with EU law. The ruling clarifies that the exclusion was maintained under Article 176 of the VAT Directive because it existed at the time of Spain’s accession to the EU, thereby strengthening the Spanish legislature’s position while leaving room for future disputes over expense classification.
Law360 · 4 days ago
The European Court of Justice ruled that Spain’s restriction on VAT deductions for entertainment expenses does not breach EU law. The decision confirms that the country’s entertainment VAT break limit remains compliant with EU regulations. The ruling was issued on March 12, 2026.
Forbes España · 10 days ago
Spanish business and professional associations have called for fiscal deductions to help companies and self-employed professionals implement the new electronic invoicing and Verifactu systems, which are set to become mandatory on 1 January 2027. They argue that without such incentives, 3.3 million SMEs and 3.4 million self-employed could face a collapse in the rollout. The request is an amendment to the Royal Decree Law that maintains the 2027 deadline while seeking tax relief.
LinkedIn · 18 days ago
The LinkedIn post explains Spain’s Modelo 349, an informative declaration for intra‑community transactions with EU VAT‑registered entities. It outlines filing frequencies, deadlines, key compliance risks, and the types of transactions that must be reported. The post emphasizes that Modelo 349 does not generate a tax payment and stresses accurate reporting to avoid audits.
International Tax Review · about 1 month ago
The Court of Justice of the European Union (CJEU) ruled that Spain cannot impose a stricter “directly and exclusively” requirement on VAT exemptions for services supplied by independent groups of persons. The decision clarifies that services must be directly necessary for the exempt activity, but exclusivity is not required, allowing general services such as cleaning to qualify. The ruling also states that competition distortion must be assessed on a concrete basis, not presumed.
Bloomberg Tax · about 2 months ago
The European Court of Justice issued a preliminary ruling on Jan. 22, 2026, stating that the Spanish VAT exemption for services rendered by cost‑sharing groups to members at cost is not valid. The ruling interprets Council Directive 2006/112/EC as precluding such an exemption, as the services were deemed outsourced and not linked to tax‑exempt activities. The decision applies to services such as cleaning for healthcare and educational buildings.
