Master Spain's VAT Legislation

The creation of the internal market in the EU requires new regulations for the Value Added Tax (VAT).
The Council of the European Communities has approved directives and regulations for VAT.
The internal market abolishes fiscal borders and requires the taxation of intra-community operations.
The transitional regime will last for four years and maintains the principle of taxation at the destination.
The transitional regime includes the creation of the taxable event of intra-community acquisition of goods.
Exemptions for intra-community deliveries of goods are established.
Special regimes for travelers, farmers, and distant sales are created.
Formal obligations for operators and taxpayers are established.
The harmonization of VAT rates includes a list of categories of goods and services that can enjoy reduced rates.
The VAT legislation is modified to solve technical issues and simplify its application.
The creation of the Single Market in the European Union led to changes in VAT legislation.
The taxable event of importing goods only applies to goods from non-EU countries.
The abolishment of fiscal borders requires exemptions on exports to be defined as goods sent outside the EU.
The VAT law was modified to adapt to the new concept of importing goods only from non-EU countries.
There is a general VAT rate of 15% and two reduced rates of 5% or higher for certain goods and services.
Countries that previously applied a zero or lower reduced rate are recognized and allowed certain faculties to comply with the harmonization requirements.
The legislation provides a more comprehensible text that provides greater simplification and legal certainty for taxpayers.
The new taxable event of "acquisition of goods within the EU" required specific regulations.
Changes were made to perfect the VAT legislation, including the incorporation of regulatory provisions and defining the territoriality of the tax.
The new law establishes clearer criteria for the non-taxation of activities carried out by public entities.
The Law modifies the taxation of operations related to real estate rights and establishes them as services subject to the same tax treatment as the lease of real estate.
The Law allows taxpayers to renounce exemptions for certain real estate operations, such as land deliveries or second and subsequent deliveries of buildings, to exercise their deduction rights.
The Law simplifies the delimitation of exemptions for operations related to vessels and aircraft dedicated to international navigation, eliminating the previous requirement of a 15-year period of dedication.
Taxpayers can rectify their invoiced VAT within a five-year period and adjust their deduction rights for goods and services used partially in their business activities.
The Law reduces the application of the special regime for agriculture, livestock, and fishing to individuals with a turnover below 50 million pesetas and excludes commercial companies.
The Law establishes the solidary responsibility of recipients who benefit from exemptions, non-taxable situations, or lower tax rates based on inaccurate statements.
The Law creates a special infringement for recipients who do not have the right to total deduction of VAT and make inaccurate statements.
The Law includes transitional provisions to regulate operations affected by the changes in the legislation, such as maintaining the previous limits for VAT exemptions for travelers from Canary Islands, Ceuta, and Melilla.
The new regime of exemptions for operations related to vessels and aircraft will also apply to previous operations to avoid distortions in the VAT application.
The Law recognizes the effects of renunciations and options made before January 1, 1993, for special regimes, and maintains the general criterion of applying the previous regime for intracommunity operations initiated before January 1, 1993.
The text concerns exemptions from the Value Added Tax (VAT) in Spain.
Chapter II discusses intra-community acquisitions of goods.
Chapter III discusses imports of goods.
Title II covers exemptions.
Chapter I of Title II covers exemptions for deliveries of goods and provision of services.
Article 20 lists various exemptions, including for postal services, healthcare services, and social assistance services.
The exemption for healthcare services includes diagnoses, treatments, and medical testing.
The exemption for social assistance services includes protection for children and youth, elderly care, and assistance for refugees and minorities.
Educational services are also exempt, including language instruction and professional training.
Exemptions may not apply to certain specific services, such as sports instruction and commercial deliveries of goods.