Spain Repeals Royal Decree‑Law 16/2025: Simplified VAT Thresholds, Special Agriculture/Livestock/Fishing VAT Regime

Royal Decree‑Law 16/2025 (published 23 December 2025) introduced several tax measures, including important provisions for VAT taxpayers. Among the most relevant aspects were:

• 1.1. Extension of Simplified VAT Regime Thresholds
  • RDL 16/2025 extended the limits for the simplified VAT regime and the special agriculture, livestock, and fishing VAT regime through 2026, allowing more small taxpayers to remain under simplified reporting structures. [sede.agenc…ria.gob.es]
• 1.2. Increased Threshold Amount
  • This included the temporary increase of the turnover threshold from EUR 150,000 to EUR 250,000, enabling broader eligibility for simplified VAT rules (as described in the user-provided text).
• 1.3. Adjusted Filing and Revocation Deadlines
  • The decree also established revised deadlines for resignations and revocations of simplified VAT regimes, running from 25 December to 31 January 2026, as well as provisions for extraordinary resignation periods via the Spanish Tax Agency’s electronic office. [sede.agenc…ria.gob.es]
• 1.4. Treatment Consistent With Other VAT Measures
  • VAT‑related compliance windows and extraordinary options enacted under RDL 16/2025 were similarly confirmed in independent VAT updates summarizing the decree’s application for 2026. [vatupdate.com]

2. The Repeal: Congressional Resolution of 27 January 2026

• On 27 January 2026, Spain’s Congress adopted a formal Resolution repealing RDL 16/2025, published in the Official Gazette on 28 January 2026 (per user-provided information).
• This repeal nullifies the VAT‑related extensions outlined above. As a result:
• The increased simplified VAT regime threshold (EUR 250,000) will not apply for 2026.
• The reversion to the prior legal thresholds (EUR 150,000) appears to be restored, unless replaced by new legislative measures.
• Previously announced deadlines for resignations, revocations, and SII/Simplified VAT elections under RDL 16/2025 are no longer legally operative.
• Because the Congressional Resolution directly repeals the decree in its entirety, all VAT‑related measures tied to RDL 16/2025 lose their legal effect retroactively to the date of repeal, unless transitional provisions are later issued by the government or Tax Agency.

3. Practical VAT Implications for 2026

• 3.1. Simplified VAT Regime Eligibility Shrinks Again
  • With the repeal, the simplified regime again follows the pre‑RDL 16/2025 thresholds, meaning taxpayers exceeding EUR 150,000 turnover cannot apply it in 2026.
• 3.2. Special VAT Regime for Agriculture, Livestock, and Fishing
  • The larger threshold similarly disappears, restricting eligibility back to traditional limits. Businesses that had tentatively planned to stay in the regime under the higher threshold will now need to transition to the general VAT regime, requiring:
  • Standard VAT bookkeeping,
  • Periodic VAT returns,
  • Potential SII (Immediate Supply of Information) obligations depending on turnover/structure.
• 3.3. Resignation and Revocation Windows May Revert
  • The extraordinary periods defined under RDL 16/2025 no longer apply. Unless new guidance is issued by the Agencia Tributaria, revocations and resignations revert to:
  • Ordinary calendar‑linked deadlines under Spain’s VAT regulations,
  • Regular annual opt‑in/opt‑out provisions for special regimes.

4. Interaction With Other VAT Developments

• Although RDL 16/2025 has been repealed, other VAT reforms for 2026—particularly those unrelated to the simplified regime—remain in force. Examples include broader VAT reporting initiatives and continuing compliance obligations confirmed by the Tax Agency in late 2025. [sede.agenc…ria.gob.es]
• Additionally, ongoing monitoring of Spanish VAT changes (e.g., SII system adjustments and Verifactu implementation schedules) remains critical. [vatupdate.com]

5. What Businesses Should Do Now

• With the repeal effective:
  • Step 1 — Reassess VAT Regime Eligibility for 2026
    • Businesses previously planning on qualifying under the higher EUR 250,000 threshold must confirm whether they now fall outside the simplified regime.
  • Step 2 — Prepare for General VAT Regime Compliance
    • This includes more sophisticated record‑keeping, electronic ledgers, and monthly/quarterly VAT filings.
  • Step 3 — Monitor Agencia Tributaria Guidance
    • The Tax Agency may issue transitional instructions to avoid taxpayer hardship due to the abrupt repeal.
  • Step 4 — Review Investment Incentive Planning
    • Although outside VAT scope, note that RDL 16/2025 also affected depreciation incentives for electric vehicles and renewable energy installations; businesses should revisit any planning assumptions.

Conclusion

• The repeal of Royal Decree‑Law 16/2025 significantly alters Spain’s VAT landscape for 2026. The most immediate impact is the removal of the expanded simplified VAT regime threshold, creating direct compliance and administrative consequences for SMEs and agricultural producers. Taxpayers should promptly reassess their VAT positions, adjust compliance structures, and await further administrative clarification.

See also

• Orbitax