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Spain’s Congress Urges VAT Exemption for Self-Employed Under €85,000

The vote increases pressure on the government to write an EU-permitted small-business VAT break into Spanish law.

Overview

  • Lawmakers approved a non-binding motion asking the government to exempt VAT for workers who bill less than €85,000, passing by 339 votes to 5 with six abstentions.
  • The vote satisfied a condition set by Junts to back the government’s anti-crisis decree on energy and fuel measures.
  • Nothing changes for taxpayers yet, because ministers must draft and pass a decree or law before any exemption can take effect.
  • Junts said Minister Félix Bolaños pledged a 0% VAT option for those who opt in, though the government has not published details.
  • EU rules allow a small-business VAT franchise up to €85,000, but Spain has not transposed the directive and now faces an infringement case from the European Commission.