- Transposition of EU Directive 2020/285: The primary objective is to partially transpose Council Directive (EU) 2020/285, which amends Directive 2006/112/EC on the common system of VAT regarding the special scheme for small enterprises. This includes simplifying VAT obligations and reducing compliance burdens for small businesses.
- Implementation of Technical Corrections: The decree aims to make technical corrections to existing Royal Decrees to align them with recent amendments to the VAT Code. This ensures consistency and clarity in the application of VAT regulations.
- Simplification of Invoicing Requirements: The amendments introduce provisions allowing taxable persons under the special exemption scheme for small enterprises to issue simplified invoices instead of full invoices, thereby reducing administrative burdens.
- Adjustment of VAT Exemption Thresholds and Conditions: The decree updates the conditions and thresholds for small enterprises to benefit from VAT exemptions, including adjustments to turnover limits and notification requirements for transitioning between different VAT schemes.
- Alignment with National Legislation: The decree makes necessary adjustments to national regulations to ensure they are consistent with the new VAT rules, including changes to the refund procedures, penalties for non-compliance, and specific provisions for sectors like agriculture.
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