The EU SME VAT exemption regime was introduced to make VAT easier for smaller businesses, with the aim to reduce the administrative burden that VAT can create for sole traders and micro-enterprises. Spain has not yet made this system available in practice for its own SMEs, which leaves many Spanish small businesses working under heavier VAT obligations than comparable businesses in other EU countries.
ETL GLOBAL Member Allyon analyses the business and legal impact of this delay. The report explains how Spain’s position keeps small businesses tied to VAT from the first euro of sales and blocks practical access to the cross-border exemption under Directive (EU) 2020/285, which can place Spanish SMEs at a disadvantage in the EU internal market.
