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

BOE 288, November 28, 2014

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.