No VAT for low-turnover autónomos: what is being discussed and where it stands

For more than a year there has been talk of allowing self-employed workers (autónomos) with a small turnover to work without charging IVA (Spanish VAT). Here is a brief summary of what is known so far.

What is proposed

• no IVA charged on invoices;
• no quarterly IVA return (modelo 303), just one annual information return;
• but also no recovery of IVA on your own expenses.

Various figures are being mentioned in the discussion. €85,000 is the maximum the EU allows. Spain may choose a lower limit.

Who would benefit

It pays off if your clients are private individuals and you have few expenses with IVA: your services become cheaper for the client or more profitable for you, with less paperwork. It does not pay off if you have large purchases or investments: you would no longer be able to recover the IVA on them. The switch will most likely be voluntary, but that has not been confirmed either.

Where it stands

• In 2026 Congress twice urged the government to introduce the rule, but such resolutions are not binding.
• The government promised it to the Junts party, but in June it blocked the Junts bill because of the cost to the budget.
• The European Commission has referred Spain to the EU Court of Justice for failing to introduce the rule.

There is no official timetable. The earliest realistic date is 2027, and it may be later.

Should you change anything now?

No. Keep charging IVA and filing your returns as usual. Once the rule is approved, we will work out for each client whether switching makes sense and tell you what to do.

This article is based on Directive (EU) 2020/285 and reports on the progress of the discussion in Spain. This is not legal advice. Updated September 2026.