- Law 13/2023 introduced amendments for the financial and insurance industries in Spain
- The value added tax (VAT) use and enjoyment rule has been eliminated
- This will impact the VAT deductibility regime for entities providing financial and insurance services to non-EU entrepreneurs or professionals
- The elimination of this rule could result in significant VAT savings for these entities
- Financial entities with derivatives contracts with non-EU counterparties will be particularly affected
- It is important to review the pro-rata calculation for financial and insurance operations in light of this amendment
- The VAT return for the last period of 2023 will be the first to consider the effects of this modification on the pro-rata calculation.
Source: kpmg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
