{"id":21113,"date":"2026-04-23T14:49:15","date_gmt":"2026-04-23T14:49:15","guid":{"rendered":"https:\/\/gmtaxconsultancy.com\/?p=21113"},"modified":"2026-04-23T14:49:15","modified_gmt":"2026-04-23T14:49:15","slug":"vat-exemption-scheme","status":"publish","type":"post","link":"https:\/\/gmtaxconsultancy.com\/en\/tax\/vat-exemption-scheme\/","title":{"rendered":"VAT exemption scheme"},"content":{"rendered":"<h2><span class=\"ez-toc-section\" id=\"VAT_exemption_scheme_how_it_affects_freelancers_and_businesses_and_when_it_works_in_your_favour\"><\/span>VAT exemption scheme: how it affects freelancers and businesses and when it works in your favour<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Today I want to explain how the VAT exemption scheme works and the main effects it will have on freelancers and certain companies \u2014 a measure that appears set to be approved soon.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-white ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">\u00cdndice contenidos<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/gmtaxconsultancy.com\/en\/tax\/vat-exemption-scheme\/#VAT_exemption_scheme_how_it_affects_freelancers_and_businesses_and_when_it_works_in_your_favour\" >VAT exemption scheme: how it affects freelancers and businesses and when it works in your favour<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/gmtaxconsultancy.com\/en\/tax\/vat-exemption-scheme\/#Who_will_it_apply_to\" >Who will it apply to?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/gmtaxconsultancy.com\/en\/tax\/vat-exemption-scheme\/#What_does_it_mean_in_practice\" >What does it mean in practice?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/gmtaxconsultancy.com\/en\/tax\/vat-exemption-scheme\/#What_are_the_consequences\" >What are the consequences?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/gmtaxconsultancy.com\/en\/tax\/vat-exemption-scheme\/#%E2%9C%85_If_most_of_your_clients_are_also_businesses_B2B_operations\" >\u2705 If most of your clients are also businesses (B2B operations)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/gmtaxconsultancy.com\/en\/tax\/vat-exemption-scheme\/#%E2%9C%85_If_most_of_your_clients_are_end_consumers_B2C_operations\" >\u2705 If most of your clients are end consumers (B2C operations)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/gmtaxconsultancy.com\/en\/tax\/vat-exemption-scheme\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<h3><span class=\"ez-toc-section\" id=\"Who_will_it_apply_to\"><\/span>Who will it apply to?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Any business owner or professional (that is, both individuals (freelancers) and companies) whose turnover in the previous year did not exceed 85,000 euros.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_does_it_mean_in_practice\"><\/span>What does it mean in practice?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>No VAT is charged on sales made.<\/li>\n<li>Input VAT on purchases cannot be deducted (because VAT is not applied to sales).<\/li>\n<li>In principle, a simplification of obligations \u2014 though the details are yet to be confirmed.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_consequences\"><\/span>What are the consequences?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><span class=\"ez-toc-section\" id=\"%E2%9C%85_If_most_of_your_clients_are_also_businesses_B2B_operations\"><\/span>\u2705 If most of your clients are also businesses (B2B operations)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><strong>Case A) They can deduct the VAT you charge them:<\/strong><br \/>\nApplying this scheme does not benefit you because: your client neither gains nor loses, as the cost of the transaction remains the same for them (since VAT is neutral for them). Meanwhile, you lose the ability to deduct the input VAT on your purchases, which increases your costs.<\/p>\n<p><strong>Case B) They cannot deduct the VAT you charge them:<\/strong><br \/>\nIn this case, the scheme allows you to sell to the client without VAT, offering them a lower final cost without reducing your selling price \u2014 thereby improving your price competitiveness. Alternatively, you could raise your selling price by the amount of VAT you no longer need to charge, thus improving your gross margin. However, you will not be able to deduct input VAT on your purchases, which will increase your purchase costs.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"%E2%9C%85_If_most_of_your_clients_are_end_consumers_B2C_operations\"><\/span>\u2705 If most of your clients are end consumers (B2C operations)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>The conclusion is the same as in Case B) above: you can offer the client a lower final price (because there will be no VAT) or you can increase your selling price and thus improve your margin. Bear in mind, however, that your purchase costs will increase by the non-deductible VAT.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>As you can see, while the measure is positive because it gives the option to choose the applicable regime (which is why PIMEC also supports its approval), it is essential to analyse the effect it may have in each specific case, depending on the type of client and cost structure, in order to properly assess whether applying it is the right decision.<\/p>\n<p>If you need help with this analysis, you know where to find me.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>VAT exemption scheme: how it affects freelancers and businesses and when it works in your favour Today I want to explain how the VAT exemption scheme works and the main effects it will have on freelancers and certain companies \u2014 a measure that appears set to be approved soon. Who will it apply to? Any [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":21109,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[52],"tags":[],"class_list":["post-21113","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax"],"_links":{"self":[{"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/posts\/21113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/comments?post=21113"}],"version-history":[{"count":1,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/posts\/21113\/revisions"}],"predecessor-version":[{"id":21115,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/posts\/21113\/revisions\/21115"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/media\/21109"}],"wp:attachment":[{"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/media?parent=21113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/categories?post=21113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/tags?post=21113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}