Which EU directives has Spain failed to transpose, leading to the Commission's referral?

Spain has failed to transpose Council Directive (EU) 2020/285 on the SME VAT scheme and Council Directive (EU) 2022/542 on place‑of‑supply for streamed services and the VAT special scheme for second‑hand goods.

When were the directives required to be transposed into national law?

Member States were required to transpose the directives by 31 December 2024.

What action has the European Commission taken against Spain?

The Commission referred Spain to the Court of Justice of the EU and requested the imposition of financial sanctions.

What are the potential consequences of Spain not transposing the place‑of‑supply provisions?

It risks double taxation or non‑taxation for services streamed or virtually available, and may distort competition in the EU market.

When did the Commission send formal notices and reasoned opinions to Spain?

Formal notices were sent on 31 January 2025 and reasoned opinions on 17 July 2025.

Commission decides to refer Spain to the Court of Justice of the European Union for failing to transpose VAT measures into national law

EU Top Court Allows Spain's Entertainment VAT Break Limit

Law360 · about 5 hours ago

The EU's top court has ruled that Spain's restriction on VAT deductions for entertainment expenses does not breach EU law. The decision, issued on March 12, 2026, rejects a human resources firm's challenge to the country's entertainment VAT break limit. The ruling confirms that Spain's policy remains compliant with EU regulations.

Business and professional associations ask for fiscal aid to implement electronic invoicing

Forbes España · 6 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.

Spain VAT Compliance: Modelo 349 Requirements and Risks

LinkedIn · 13 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.

CJEU rejects Spain’s restrictive VAT exemption approach for independent groups of persons

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.

European Court of Justice Issues Preliminary Ruling on Spanish VAT Exemption for Cost-Sharing Group Services

Bloomberg Tax · about 1 month 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.

ECJ Backs VAT Exemption For Spanish Cleaning Co-Ops

Law360 · about 2 months ago

The European Court of Justice ruled that Spain cannot automatically deny cleaning cooperatives a VAT exemption for services supplied to educational and healthcare institutions. The decision confirms that such co‑ops are entitled to the exemption, preventing blanket denial by Spanish authorities. The ruling was issued on 22 January 2026.