{"id":3683,"date":"2026-05-08T10:00:00","date_gmt":"2026-05-08T08:00:00","guid":{"rendered":"https:\/\/ruizyasociados.es\/2026\/05\/08\/sin-categorizar\/vat-franchised-2026-realities-and-deadlines"},"modified":"2026-07-14T11:42:00","modified_gmt":"2026-07-14T09:42:00","slug":"vat-franchised-2026-realities-and-deadlines","status":"publish","type":"post","link":"https:\/\/ruizyasociados.es\/en\/2026\/05\/08\/legal-news\/vat-franchised-2026-realities-and-deadlines","title":{"rendered":"\u2696\ufe0fVAT Franchisee 2026: Realities, deadlines and prudence in the face of the latest announcements"},"content":{"rendered":"\n

In recent weeks, headlines about the “elimination of VAT for the self-employed<\/strong>” have once again taken center stage due to the government’s recent political commitments to pass key decrees. However, at Ruiz & Associates<\/a><\/strong>, we see a gap between the political announcement and the technical reality. As advisors, our obligation is to separate the noise from the current regulations so that you can plan your business with confidence. <\/p>\n\n

Why is this being talked about now? (Pressure from Brussels) <\/h3>\n\n

This is not a voluntary initiative by the Spanish government. The reality is that Spain is the only country in the European Union<\/strong> that has not yet transposed Directive (EU) 2020\/285<\/a><\/strong>. On March 11, the European Commission referred the case to the Court of Justice of the EU after all grace periods had expired. <\/p>\n\n

The Government’s current commitment to implement a VAT exemption for those with annual revenues below \u20ac85,000<\/strong> is largely an emergency response to stem the multimillion-euro fines that Brussels is about to impose on Spain.<\/p>\n\n

How would the franchise system work (in theory)?<\/h3>\n\n

It is vital to understand that this system is not a “help”, but an optional regime change<\/strong> with very defined technical pros and cons:<\/p>\n\n

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  1. Invoicing without VAT:<\/strong> The self-employed person does not pass on 21% (or the corresponding rate) on their bills.<\/li>\n\n\n\n
  2. Goodbye to Form 303:<\/strong> The obligation to file quarterly returns would be eliminated, simplifying bureaucracy.<\/li>\n\n\n\n
  3. The critical drawback:<\/strong> By not charging VAT, the self-employed worker loses the right to deduct VAT on their expenses<\/strong>. For those with high investment or operating expenses (premises, supplies, vehicles), this system could be less profitable than the current one. <\/li>\n<\/ol>\n\n

    The million-dollar question: When will it come into force?<\/h3>\n\n

    This is where we urge our clients to exercise extreme caution. Despite the announcements, the Tax Agency requires a profound restructuring of its IT systems to manage more than one million self-employed workers under this new model. <\/p>\n\n