Tax reform has been on the table in recent parliamentary action in Spain, and if implemented, it would positively change the way independent workers (such as the self-employed and self-employed) work. freelancer) They are integrating cryptocurrencies into their business models.
The foreseeable benefits are not only financial, but also structural, as they involve the elimination of friction between the volatility of digital assets and the strict tax obligations expressed in euros.
Currently, freelancers who accept Bitcoin (BTC) or cryptocurrencies face logistical challenges on a quarterly basis. When issuing an invoice, the professional must calculate the value added tax (VAT) in euros according to the current exchange rate, receive the digital assets and ensure that there is sufficient liquidity in fiat currency to subsequently settle this tax at the tax office.
The introduction of a new Franchise VAT regime, currently under discussion, will significantly simplify this process for users with annual invoices of less than €85,000, by allowing professionals to issue net invoices without charging 21% VAT.
This means that The agreed amount of digital assets belongs to the worker in fullIf there is no corresponding personal income tax (IRPF) tax.
Another fundamental advantage is the elimination of forced conversions. By eliminating the need to settle Form 303s quarterly, self-employed individuals will no longer have to periodically sell portions of their positions for digital currency to pay taxes that will no longer be collected under the new system.
Similarly, the impact of volatility is neutralized, as the value of digital assets falls between the issuance of the invoice and the payment of taxes, eliminating the risk that workers will have to pay more units of assets to cover their tax liability in euros.
It is important to distinguish between charges for services and the nature of digital currency and taxes. As explained on CriptoNoticias, the exchange of virtual currencies for euros or other currencies is exempt from VAT according to the standards adopted by tax authorities and according to the Court of Justice of the European Union (CJEU).
This means that buying and selling crypto assets is not subject to VAT, but taxes incurred on costs related to such activities are not deductible.
Direct incentives for Bitcoin and cryptocurrency adoption
The franchise VAT reform will therefore simplify the professional practice of self-employed people and unify declaration agility standards. In short, this system May act as an indirect incentive for the adoption of Bitcoin technology As a way for self-employed people in Spain to receive payments.
In fact, by reducing the bureaucratic burden and eliminating the need for annual Form 390 summaries, self-employed individuals can focus on managing their assets and servicing them without relying on tax preparation software or consulting firms that specialize in managing the nuances of digital assets.
However, it is important to remember that this regime is voluntary in nature and self-employed individuals will need to assess whether the exemption from filing a VAT return compensates for the inability to take input tax credits for business expenses such as the purchase of computer equipment.
However, it should be made clear that this franchised VAT regime is not yet in force. Congress approved a non-legislative bill approved in March, but it only provides a roadmap; Confirmed political involvement by the Spanish government. The latter has already announced its intention to remove the obligation for self-employed people with an annual income of less than €85,000 to pay VAT on their invoices.
Depending on Moncloa’s political decisions, the reform could take effect in January 2027.
Therefore, until governments proceed with the final transition of European Directive 2020/285 and its subsequent publication in the Official Journal (BOE), the VAT collection system for digital assets will continue to be subject to the general quarterly settlement rules.
(Tag translation) Bitcoin (BTC)
