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country-icon Spain


Extension of reverse charge application

The reverse charge mechanism is deployed by multiple countries as a means of regulating the VAT flow to tax authorities, by shifting the onus of paying VAT on to the buyer rather than the supplier. Doing so ensures the payment of VAT and it is therefore viewed as an effective fiscal measure to reduce tax evasion and, by extension, the VAT gap in a country. It is therefore unsurprising that several countries extend the scope of goods and services subject to the reverse charge application. Spain is no exception, who have now extended the application of the reverse charge to include scrap, plastics and material waste.

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