The Spanish VAT governs the indirect taxation of business and professional operations, aligned with EU Directive 2006/112/EC and shaped by CJEU case law. The taxable person is normally the supplier, with the important exception of the reverse charge (Art. 84.Uno.2 LIVA) for specific operations such as real estate transfers with waiver of exemption, real estate works, investment gold, scrap metal and emission allowances.
Real estate transactions combine generic exemptions (second and later transfers) with the waiver of exemption available to taxable persons with the right to deduct, a mechanism that re-routes the operation through VAT under reverse charge. Interaction with Transfer Tax (ITP) and Stamp Duty (AJD) requires a case-by-case analysis.
Intra-EU operations follow the harmonised rules after the 2020 “quick fixes”, and distance sales and electronic services go through the OSS/IOSS one-stop windows. Post-2021 e-commerce shifts taxation to the country of consumption above the €10,000 threshold.
On penalties, the Spanish Supreme Court has confirmed that sanctions under Article 170.Dos.4 LIVA for failure to self-charge reverse-charge VAT may be annulled as disproportionate, without referring a constitutional or preliminary question.
This section covers real estate, intra-EU, special regimes, exemptions, deductions, the right to deduct and penalty proceedings.