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Good news for entrepreneurs in Spain: Freelancers will no longer have to pay VAT from next year thanks to the European Union [Video]

THEY have long borne a heavy tax burden in Spain, but a new directive that comes into effect next year may leave autonomos (freelancers) smiling.

The Treasury and self-employed workers’ organisations are studying the possibility of abolishing the requirement for self-employed workers and companies earning under €85,000 to pay IVA (VAT).

Currently, they must include IVA in their invoices and file a quarterly tax return, known as form 303.

Under EU Directive 2020/285, these groups will have the option to opt out entirely, or make just one annual declaration instead.

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Although the EU-wide regulation in fact came into effect in 2020, Spain has not yet implemented it.

But a looming January 1 deadline for EU countries to get cracking and ‘remove’ this tax from some self-employed workers has focused the government’s attention.

The European Commision is pushing members …

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