Country-specific updates: Spain

On 28 October 2020, the Spanish Government released the Budget Bill for 2021. The proposed new VAT measures included in the Bill are the following:

• Increase of VAT rate on sugary drinks from 10% to 21%.
• The use and enjoyment rule will not apply to services rendered to entrepreneurs established in the Spanish territories of Canary Islands, Ceuta and Melilla (as is the case for entrepreneurs established in other EU member states).

The changes to the use and enjoyment provisions will enhance the beneficial tax environment for online gambling operators who move their tax residence to the territories of Ceuta or Melilla.

The Budget Bill will now follow the parliamentary discussion and approval process.