ATA denounces the Government to the EU for not exempting self-employed workers who invoice less than 85,000 euros from VAT

The main employer of the self-employed, ATA, has denounced Spain before the European Commission for not transposing a European directive that would exempt self-employed workers from passing on VAT smaller in size. Specifically, the community regulations in question establish the possibility for self-employed workers who invoice less than 85,000 euros per year to be exempt from charging, liquidating and declaring this tax. Something that is currently not generally possible in Spain.

This was announced this Monday by Lorenzo Amor, president of ATA, during an informative breakfast organized by Europa Press in Andalusia. Amor has assured that Spain is the only country in the EU that does not allow the self-employed to benefit from this “franchised VAT”something that, in their opinion, represents an “obstacle” to their activity that generates “legislative insecurity.” “There are obstacles and more obstacles,” he stated.

The complaint sent to Brussels by ATA reflects that andThe Government had to have transposed this directive before December 31, 2024. The Commission sent a formal request to Spain in January 2025 to do so and in July it reiterated the pressure through an opinion in which it urged the country to adapt the regulations within a period of two months.

Specifically, ATA demands that the European Commission declare that Spain has failed to comply with its obligations by not adapting the directive and, if the situation is not corrected, denouncing the country before the Court of Justice of the European Union (CJEU) to force the transposition. If the CJEU rules in favor of ATA, the self-employed could claim compensation from the State for the economic damages suffered, the organization maintains.

In ATA they see a comparative tort That other countries do have this generalized VAT exemption and Spain does not offer it. For example, they point out that Italy, France and Ireland have a maximum turnover threshold of 85,000 euros, Germany 22,000, Belgium 25,000, Portugal 15,000 or Denmark 6,700. And they remember that the Government could set a lower threshold of 85,000 euros if it is concerned about the fight against fraud, as other countries have already done.

Discontent with current regulations

The organization chaired by Lorenzo Amor maintains that The special VAT regimes that Spain currently has (such as the simplified one or the equivalence surcharge) are very restrictiveare limited to certain sectors and are far from being generalized, as the directive demands. “The vast majority of self-employed workers and SMEs are obliged to charge VAT from the first euro of billing,” ATA maintains in its complaint to the Commission.

In the lawsuit, ATA introduces several comparative tort situations that occur under the current system. For example, they say that a self-employed person in the hospitality sector can access the simplified regime, which allows them to calculate their VAT through a fixed module based on the meters of their premises or the staff they are in charge of, instead of invoice by invoice.

On the contrary, a self-employed lawyer with a lower billing has to apply 21% VAT from the first invoice and keep detailed accounting of all input VAT. “It is as if the tax system forces a cyclist to comply with the same technical inspections, insurance and permits as a large truck.while a delivery van is allowed to circulate with a simple annual inspection,” they exemplify.

Howeverthe VAT exemption is a double-edged sword that does not interest all self-employed workers equally. It must be taken into account that if there were no obligation to declare this tax, the self-employed would not be able to deduct the tax expenses they bear on the purchases they make for their activity.