VAT-Related Measures Introduced by Royal Decree-Law 2/2026

1. Context and Objectives

Royal Decree-Law 2/2026, published in the Spanish Official Gazette (BOE) on 4 February 2026, introduces a new package of urgent measures aimed at addressing ongoing social vulnerability, maintaining fiscal stability, and ensuring continuity in the tax system during a period of budgetary extension. Within this framework, several targeted measures affect the Spanish Value Added Tax (VAT) system, primarily focusing on administrative simplification, legal certainty, and anti-fraud controls, rather than changes to VAT rates.

These VAT measures are part of Chapter IV (Tax Measures) of the decree and are designed to protect small businesses, reduce compliance burdens, and reinforce controls in sensitive sectors such as hydrocarbons.

2. Extension of Turnover Thresholds for Special VAT Regimes (2026)

2.1 Simplified VAT Regime and Special Scheme for Agriculture, Livestock and Fisheries

The decree extends, through fiscal year 2026, the increased turnover thresholds that determine eligibility for:

• The Simplified VAT Regime, and
• The Special VAT Scheme for Agriculture, Livestock and Fisheries (REAGP).

Specifically, the general turnover limit remains at EUR 250,000, instead of reverting to the standard EUR 150,000 threshold foreseen under ordinary VAT law. This extension applies retroactively from 1 January 2025 and covers the period 2016–2026 inclusive.

2.2 Policy Rationale

This measure ensures continuity and predictability for small businesses and self-employed taxpayers, preventing an automatic migration to the general VAT regime that would otherwise entail:

• Increased invoicing and bookkeeping obligations, and
• Higher administrative and compliance costs.

The VAT measure is expressly coordinated with equivalent extensions under the Personal Income Tax (IRPF) objective estimation regime, maintaining consistency across the Spanish tax system.

3. Extraordinary Deadlines for VAT Regime Renunciations and Revocations (2026)

3.1 New Special DeadlineGiven the late confirmation of applicable thresholds for 2026, Royal Decree-Law 2/2026 establishes an extraordinary deadline for:

• Renouncing or revoking renunciations to:
  • The Simplified VAT Regime, and
  • The Special Agriculture, Livestock and Fisheries VAT Scheme.

The new deadline runs from the day following publication of the decree until 16 February 2026.

3.2 Validation of Prior Elections

To avoid legal uncertainty, the decree confirms that renunciations or revocations already filed in December 2025 or January 2026 remain fully valid. Taxpayers who made such elections are nevertheless granted the right to change their decision within the new deadline.

3.3 Practical Impact

This measure prevents inadvertent non-compliance and ensures that VAT elections reflect informed taxpayer decisions, despite the exceptional legislative timing.

4. Reduction of Threshold for “Trusted Operator” Status in the Hydrocarbons Sector

4.1 New VAT Anti-Fraud Measure

To enhance VAT controls in the hydrocarbons sector while limiting administrative burdens, the decree reduces the minimum extraction volume required to qualify as a “trusted operator” from 1 billion litres to 500 million litres over the preceding 12 months.

4.2 VAT Implications

Trusted operator status allows eligible businesses to benefit from:

• Simplified VAT treatment in storage and extraction operations, and
• Reduced guarantees and controls within excise and VAT frameworks.

The measure strikes a balance between fraud prevention and operational efficiency, particularly in a sector historically exposed to VAT carousel and missing trader fraud.

5. Extraordinary Opt-Out from the SII (Immediate Supply of Information) and Monthly Refund Register

5.1 Temporary Flexibility for 2026

Royal Decree-Law 2/2026 introduces a temporary opt-out mechanism for VAT taxpayers who had been required or had opted to:

• Keep VAT ledgers electronically via the SII system, and/or
• Remain registered in the Monthly VAT Refund Register (REDEME).

Taxpayers may renounce these regimes until 16 February 2026, with retroactive validation of renunciations submitted in January 2026.

5.2 Objective

This measure responds to concerns arising from recent regulatory changes to electronic invoicing and reporting obligations, allowing businesses to revert temporarily to a more familiar compliance framework for 2026 without penalty

6. Overall Assessment

The VAT-related provisions of Royal Decree-Law 2/2026 do not introduce new VAT rates or bases, but instead focus on:

• Preserving simplified VAT regimes for SMEs,
• Providing legal certainty through extended deadlines,
• Enhancing VAT fraud controls in high-risk sectors, and
• Offering temporary compliance flexibility during regulatory transitions.

Taken together, these measures reflect a pragmatic approach: maintaining revenue protection while avoiding disproportionate compliance costs for vulnerable taxpayers and small businesses during 2026.

Law 37/1992, of 28 December, on Value Added Tax, is amended as follows:

One. With effect from 1 January 2025, the thirteenth transitional provision is worded as follows:

“Thirteenth transitional provision. Limits for the application of the simplified regime and the special regime for agriculture, livestock farming and fishing for the tax years 2016 to 2026.

For the tax years 2016 to 2026, both inclusive, the amount of 150,000 euros referred to in the first indent of point 2 and point 3 of section two of Article 122, and point 6 of section two of Article 124 of this Law, shall be set at 250,000 euros.”

Two. Point 2 of section eleven of the Annex is amended and shall read as follows:

“2. The provisions of the previous point shall not apply where the last depositor or, where applicable, the holder of the tax warehouse meets any of the following requirements:

a) Having been recognised as an authorised economic operator in accordance with Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 establishing the Union Customs Code.

b) Having been recognised as a trusted operator by meeting the following conditions:

a’) being registered in the extractors register,
b’) having a volume of withdrawals during the 12 calendar months immediately preceding the date of the application of at least 500 million litres of petrol, diesel and biofuels intended to be used as motor fuel as referred to in the third paragraph of Article 19(5) of this Law,
c’) having carried out wholesale operator activities during the previous 3 years, and
d’) complying with the financial solvency requirements laid down in Article 39 of the aforementioned Regulation (EU) No 952/2013 and in Article 26 of Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015.

By order of the person holding the office of the Ministry of Finance, the procedure for recognising trusted operator status shall be determined. Applications may be submitted at the time the taxpayer considers that the requirements are met, and the creation and maintenance of a register of trusted operators shall be regulated.”

OFFICIAL STATE GAZETTE
No. 31 – Wednesday, 4 February 2026 – Section I – Page 17386
Reference: BOE‑A‑2026‑2547
Available at: https://www.boe.es

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Article 9. Amendment of the Value Added Tax Regulations, approved by Royal Decree 1624/1992 of 29 December.

A fourth transitional provision is added to the Value Added Tax Regulations, approved by Royal Decree 1624/1992 of 29 December, with the following wording:

“Fourth transitional provision. Extraordinary waiver of the obligation to keep record books through the electronic headquarters of the State Tax Administration Agency and extraordinary deregistration from the monthly refund register for the year 2026.

1. Notwithstanding the provisions of Article 68 bis, taxable persons may waive the option to keep record books electronically through the electronic headquarters of the State Tax Administration Agency from the day following the entry into force of Royal Decree‑Law 2/2026 of 3 February, adopting urgent measures to address situations of social vulnerability, in tax matters and relating to the resources of territorial financing systems, until 16 February 2026. In any event, waivers made in January 2026 during the period of validity of Royal Decree‑Law 16/2025 of 23 December, extending certain measures to address situations of social vulnerability and adopting urgent measures in tax and Social Security matters, shall be deemed valid.
2. Notwithstanding the provisions of Article 30.8, taxable persons registered in the monthly refund register may request voluntary deregistration from it from the day following the entry into force of Royal Decree‑Law 2/2026 of 3 February until 16 February 2026. In any event, waivers made in January 2026 during the period of validity of Royal Decree‑Law 16/2025 of 23 December shall be deemed valid.”