Franchised VAT: the end of quarterly VAT for self-employed to come into force in 2025.

A new tax reform is expected to come into force in January 2025 that will exempt freelancers with income of less than 85,000 euros from the obligation to include VAT in their invoices. The Tax Agency and the self-employed associations are working on the implementation of the European Directive 2020/285, approved on February 18, 2020.
The European regulation raises two possibilities for the self-employed who do not exceed the aforementioned income threshold: they can choose between joining the general VAT system or joining the VAT franchise system. The VAT franchise regime establishes that income must not exceed 85,000 euros per year. If this amount is not exceeded, they are exempt from quarterly and annual VAT settlements and from issuing VAT invoices.
If they exceed the turnover by more than 10%, the VAT regime no longer applies. However, the member states of the European Union can extend this limit to 25%. In principle, all EU countries will have to comply with this directive by this date, but there could be delays in the implementation of this rule if it is not transposed into national provisions in time.
For further information on the application of this measure, please do not hesitate to contact our Tax Department (


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