From 2025, VAT administration is making some important changes as part of the modernisation of the VAT chain. However, a recently published circular now provides for a transition period until 30 September, and retains some administrative tolerances.

On 31 December 2024, the long-awaited Royal Decree was published, clarifying the scope of the new regulations. We outline the key aspects of the reform.

On 5 December 2024, the tax administration published new guidelines on the reimbursement of electricity charged at home by employers to employees and company directors. These guidelines introduce a temporary administrative tolerance for 2025.