Act 28/2014, of November 27, amending Act 37/1992, of December 28, on Value Added Tax; Act 20/1991, of June 7, on the amendment of tax aspects of the Tax and Economic System of the Canary Islands; Act 38/1992, of December 28, on Special Taxes; and Act 16/2013, of October 29, establishing specific measures on environmental taxes and adopting other tax and financial measures
VAT has been changed to adapt it to Community regulations, establishing a safer legal framework, reinforcing the fight against tax fraud, and making the tax framework of certain transactions better and more flexible:
- Rules on localization applicable to telecommunications, radio broadcasting and television and electronic services have been adapted to Spanish regulations .
- Recent CJEU doctrine on VAT matters has been included, subjecting medical and healthcare equipment and instruments for medical and hospital use to a 21% rate, amending the special system for travel agencies and revoking the exemption of the services provided by notaries public.
Although not a direct consequence of Community adaption, other noteworthy amendments also became effective January 1, 2015:
- Transfer of an autonomous economic unit.
- Services provided by what administrative doctrine calls “technical-legal bodies” for the public authorities they depend on are considered not subject to the tax.
- Objective scope of the application to waive real estate exemptions is extended.
- Taxable income in the event of non-payment is amended.
- Cases where the reverse charge mechanism is applied are extended.
- Obligatory nature of the special pro rata.
- Return of VAT payments to non-established non-Community residents (also not established in the Canary Islands, Ceuta or Melilla).
- Special taxes: tax on hydrocarbons and tax on fluorinated greenhouse gases.