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Regulatory developments 2021

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Modifications regarding VAT included in Law 11/2020, of December 30, on the General State Budgets for the year 2021

Ley 11/2020, de 30 de diciembre,

de Presupuestos Generales del Estado para el año 2021

On December 31, Law 11/2020, of December 30, on General State Budgets for the year 2021, was published in the BOE , which establishes the following modifications of Law 37/1992:

  1. Location of service provision: effective use rule. Article 68 of the LPGE for 2021 establishes that, with effect from January 1, 2021 and indefinite validity, article 70 is modified. Two LIVA , to stop applying the special rule of effective use to services that are understood to be carried out, in accordance with the location rules, in the Canary Islands, Ceuta and Melilla.

  2. Tax rate applicable to beverages with added sweeteners. Article 69 of the LPGE 2021 establishes that, with effect from January 1, 2021 and indefinite validity, article 91.uno.1.1 LIVA is modified ##2##, increasing the tax rate applicable to soft drinks, juices and soft drinks with added sugars or sweeteners, which go from being taxed at 10 percent to 21 percent.

  3. Limits for the application of the simplified regime and the special regime for agriculture, livestock and fishing. Article 70 of the LPGE 2021 establishes that, with effect from January 1, 2021 and indefinite validity, the thirteenth transitional provision LIVA is modified in order to extend the limits for the application of the simplified regime and the special regime for agriculture, livestock and fishing for the period 2021.