Spain Moves Forward with VAT Reform Under the EU’s ViDA

Monday 22nd June, 2026

The Spanish Ministry of Finance is finalising a bill that will introduce targeted changes to VAT rules for e-commerce and cross-border transactions.

The proposal forms part of Spain’s implementation of the EU’s latest VAT in the Digital Age (ViDA) package and is expected to be submitted to Congress after completing the government approval process.

At the heart of the reform is the expansion and clarification of the One-Stop Shop (OSS) framework established under the EU’s VAT in the Digital Age (ViDA) initiative. The draft clarifies how the €10,000 threshold for intra-EU distance sales should be calculated, confirming that only sales originating from the Member State where a business is established will count toward that limit.

The proposal also updates the special VAT regime for businesses established outside the European Union. Under the draft, a wider range of services supplied by non-EU businesses could fall within the regime.

These measures are part of Spain’s transposition of Directive (EU) 2025/516, which seeks to streamline VAT administration across the EU while adapting the framework to the realities of digital and cross-border commerce.

Related news: Spain Moves a Step Forward with B2B E-Invoicing Rollout