EU Commission Sues Spain, Presses France Over Tax Law Compliance

The European Commission is taking Spain to the European Court of Justice for failing to implement updated value-added tax rules on reduced rates and simplified compliance for small businesses operating across borders.

Spain’s delay in implementing the two rules — the only EU country to not do so — may create double taxation and distort competition, the commission said announcing its March infringements package Wednesday.

It requires Spain to fully implement Directive 2022/542, allowing for a wider use of reduced VAT rates, and Directive 2020/285, introducing an optional VAT exemption scheme for small businesses.

While Spain has the ...