The PP claims a VAT exemption for self-employed workers with incomes below 85,000 euros per year

Current stage of the PP's proposal on VAT exemption for self-employed workers

The PP's proposal to establish a special VAT exemption regime for self-employed workers with annual income below 85,000 euros is being processed in the Congress as Non-Legislative Proposals (PNL), and as of today it remains in a very early stage. The two registered PNLs (161/003085 and 162/000729) are already published in the Official Bulletin of the General Courts, but have not yet been debated or voted on in the Plenary or in committee. In practice, this means that the initiative is alive but pending inclusion on the agenda by the Board and the Spokespersons' Board. Meanwhile, in the Senate there is a related written question, also pending a response from the Government.

Specific initiatives presented by the PP on VAT exemption

In the XV Legislature, the Popular Parliamentary Group has articulated its VAT exemption proposal for self-employed workers on three fronts:

First, in the Congress of Deputies, through the Non-Legislative Proposal 161/003085, titled "Non-Legislative Proposal regarding the implementation of a special VAT exemption regime for self-employed workers with annual income below 85,000 euros, in compliance with Council Directive (EU) 2020/285." This PNL was registered and published on March 3, 2026. Its purpose is to urge the Government to implement a special VAT exemption regime for self-employed workers invoicing less than 85,000 euros annually, aligned with Directive (EU) 2020/285, which regulates the VAT exemption regime for small businesses.

Second, also in the Congress, the PP has presented a twin PNL, 162/000729, with the same title and content, but expressly intended for debate in the Plenary. This initiative was published on March 20, 2026 and is processed in series 162, which corresponds precisely to PNLs for the Plenary. In its statement of reasons, the Popular Group emphasizes that this is a commitment from their “Contract with the Self-Employed,” aimed at reducing the tax and bureaucratic burden on small self-employed workers, supporting the viability of this group, and transposing a European directive that should have been applied by January 1, 2025 at the latest. They denounce that Spain would be the only Member State that has not done so and cite the complaint from the National Federation of Associations of Self-Employed Workers (ATA) before the European Commission.

Third, in the Senate, the PP has registered the written question 684/024523, titled "What is the amount of economic sanctions imposed on Spain for the failure to transpose Directive EU 2020/285 regarding VAT exemption for self-employed workers and small businesses?", published on January 28, 2026. This is not a law or a PNL, but a government oversight initiative, yet it fits within the same political strategy on VAT exemption for self-employed workers.

Exact stage of processing in the Congress

For the two PNLs in Congress (161/003085 and 162/000729), the only formal milestone recorded to date is the publication of the initiative's text in the Official Bulletin of the Courts:

For PNL 161/003085, the official timeline records that on 03/03/2026 "the text of the initiative was published (Congress of Deputies)." The general status of the file appears as "Pending (publication of the initiative)", indicating that the initiative is registered and qualified but has not advanced to substantive phases.

For PNL 162/000729, the processing record is similar: on 20/03/2026 "the text of the initiative was published (Congress of Deputies)" and the file is also listed as "Pending (publication of the initiative)". Again, there are no records of agreements on its inclusion on the agenda, nor debates or votes.

Consequently, in both PNLs no subsequent procedures appear: there is no sign of inclusion on the agenda of the Plenary or committee, no amendments registered or published, no debates have been held, nor votes taken. Being PNLs, their course ends in the Congress and they do not imply referral to the Senate.

Situation in the Senate and overall conclusion

Regarding the Senate's written question 684/024523, the official status of the file is "Pending (Government response)". This means the question is registered and published, but in the sources consulted the Government's response is not yet recorded, so it is also considered an active initiative in terms of parliamentary oversight.

In summary, the so-called “PP proposal on VAT exemption for self-employed workers” is not currently at an advanced stage: it is not a bill nor a legislative proposal in legislative processing, but mainly two Non-Legislative Proposals in Congress (161/003085 and 162/000729) and a written question in the Senate. All these initiatives are registered and published but pending the next steps (debate, vote, or response). Therefore, the proposal has not yet been debated or approved, and its effect today is purely political and urging, without effective normative translation.

Responsibilities of the Social Economy spokesperson of the Popular Group in the Congress

The Social Economy spokesperson of the Popular Parliamentary Group in the Congress is an internal sectoral spokesperson of the group, responsible for coordinating and defending the PP's position on all matters related to the social economy (cooperatives, labor societies, mutual societies, insertion companies, third sector, etc.). It is not a government position but a parliamentary responsibility framed within the group's economic area and politically dependent on the general spokesperson. Their functions range from defining the group's political line on this matter to legislative negotiation, government oversight, and sectoral liaison. The details of their responsibilities derive from the Congress Rules, the group's organizational autonomy, and parliamentary practice, so they may vary between legislatures and officeholders.

Nature of the position and internal fit

The Social Economy spokesperson is a thematic spokesperson within the Popular Group, focused on public policies affecting the social economy and its entities. It is part of the group's economic area, along with spokespersons for Economy, Treasury, Labor, Social Security, Industry, and other related matters. They report to the group's general spokesperson and coordinate with the head or coordinator of the economic area, so their work integrates into the PP's overall economic strategy in Congress. Their essential mission is to act as the group’s “authorized voice” in this field and as a technical and political reference for other Popular deputies.

Definition and coordination of the group's position

One of their central functions is to translate the general lines set by the party and group leadership into concrete voting criteria, amendments, and messages on social economy. To do this, they coordinate the work of deputies in the economic area when initiatives directly or indirectly affect the social economy, distributing files and topics, and ensuring interventions maintain a coherent and unified line in committees and Plenary. Additionally, they act as a reference when fiscal, labor, budgetary, or public procurement measures have a specific impact on cooperatives, labor societies, mutual societies, or third sector entities.

Direction of legislative work on social economy

The spokesperson systematically monitors all legislative initiatives affecting the social economy: bills and legislative proposals, royal decree-laws in their validation phase, non-legislative proposals, motions, and resolutions. Based on this monitoring, they design the amendment strategy of the Popular Group, identifying which aspects should be modified, which are red lines, and which points are negotiable with other groups. They also promote own initiatives of the PP in the matter, participating in drafting specific bills and non-legislative proposals, as well as preparing impetus debates on social economy.

Representation in committees and negotiation with other groups

In practice, they are usually the main PP speaker in the economic and labor committees where social economy issues are addressed, or in specific committees if any exist. There they defend the group's amendments, debate texts with other spokespersons, and participate in negotiating reports and drafts, article by article, to try to introduce improvements or block measures considered harmful to the sector. Likewise, they intervene in appearances by government members and senior officials when the session's subject affects the social economy.

Government oversight in social economy matters

Another relevant part of their responsibilities is parliamentary oversight of the Government. They prepare and often defend oral questions in committee or Plenary on the implementation of policies supporting the social economy, as well as requests for appearances by ministers or senior officials to explain decisions impacting cooperatives, labor societies, insertion companies, or third sector entities. They also analyze the budget execution and specific social economy programs, focusing on possible delays, cuts, or breaches of commitments announced by the Executive.

Sector liaison and internal work

The spokesperson maintains a stable relationship with the main representative organizations of the social economy, as well as with specialized experts and academics. Through regular meetings and contacts, they gather the sector's demands and proposals and, when appropriate, convert them into amendments or parliamentary initiatives. Internally, they coordinate with the group's legal and economic advisors, participate in periodic meetings of the economic area, and prepare argumentaries and materials so other Popular deputies can convey a homogeneous position in the territory and media.

Task distribution with other economic area spokespersons

Within the Popular Group's internal structure, where there are spokespersons by committee (Treasury, Economy, Labor, Social Security, Industry, etc.) and deputy spokespersons, the distribution with the Social Economy spokesperson is done both by subject and by forums. The spokesperson handles matters where the main subject is the social economy and monitors provisions in major economic laws impacting the sector. The Treasury or Labor spokespersons focus on general regulation, coordinating with her when there are relevant effects on cooperatives or third sector entities. In committees, she usually intervenes when the agenda item clearly falls within her scope, while in major economic debates in Plenary the general spokesperson or main Economy or Treasury spokespersons may speak, incorporating elements prepared by her.

Scope and limits of the role

The Congress Rules define the basic framework of groups and spokespersons but do not detail sectoral sub-spokespersons nor assign them fixed functions: this is part of the Popular Group's internal autonomy. Therefore, the specific title of “Social Economy spokesperson” and the exact scope of their tasks may vary between legislatures or depending on the person holding the position. In any case, it is a collegial and operational role: major substantive decisions on the group's position are made by the group and party leadership, while the Social Economy spokesperson is responsible for executing, technically articulating, and defending them in the social economy field.

Basic legal requirements for Member States to create special VAT schemes

Member States may only establish special VAT schemes if the VAT Directive itself (Directive 2006/112/EC) expressly provides for them or if they obtain a specific authorization from the EU Council to deviate from its general rules. These schemes must respect key principles: they cannot alter the essential structure of the tax, must guarantee fiscal neutrality among businesses, and must not create significant competition distortions or appreciably affect intra-community trade. Additionally, they must comply with proportionality and temporality rules when based on individual derogations. In all cases, the national legislation transposing them must be compatible with the Directive and with EU primary law (Treaties and Charter of Fundamental Rights).

1. Legal basis in Directive 2006/112/EC

The first requirement is that any special scheme has express coverage in the VAT Directive or, failing that, an authorized derogation under Article 395 of the Directive. The European norm already provides for several harmonized special schemes, among others:

• Special scheme for small enterprises (arts. 281 et seq.).
• Travel agents' scheme (art. 306 et seq.).
• Scheme for second-hand goods, works of art, antiques, and collectibles (art. 311 et seq.).
• Special schemes for electronic, telecommunications, and broadcasting services (currently the OSS and IOSS schemes).
• Special schemes for farmers (art. 295 et seq.).

When the special scheme is already described in the Directive, the Member State must limit itself to faithfully transposing it and may only introduce national margins where the text itself allows (e.g., quantitative thresholds or certain options for inclusion/exclusion of sectors).

2. Individual derogations and authorization procedure

For special schemes not foreseen in the Directive, Member States need a derogation authorized by the Council, upon proposal from the Commission, according to Article 395. The main requirements are:

• Purpose: the derogation must aim to simplify VAT collection or prevent certain forms of tax fraud or evasion.
• Material limitation: it cannot significantly affect the total amount of VAT revenue collected at the final consumption stage.
• Temporary nature: generally authorized for a limited period (e.g., three years), with possible renewal after evaluation.
• Notification and justification: the Member State must submit to the Commission a detailed explanation of the problem, the content of the proposed scheme, and an impact assessment.

Only after adoption of a Council decision may the Member State incorporate the special scheme into its internal legal system. Lack of authorization would make the national measure incompatible with EU law.

3. Respect for the structural principles of EU VAT

Both expressly provided schemes and those created via derogation must respect the essential structure of European VAT:

• General consumption tax, proportional to the price of goods and services.
• Collection in stages through a fractional system with deduction of input VAT.
• Final burden on the end consumer, with neutrality for businesses in the production and distribution chain.

Therefore, a special scheme cannot, for example, turn VAT into a cumulative tax without deduction rights except in specific cases contemplated by the Directive itself (such as certain flat-rate compensation schemes or margin schemes). Any exception must be interpreted restrictively.

4. Neutrality, competition, and intra-community trade

Another key requirement is respect for the principle of neutrality: businesses carrying out similar operations must not be subject to significantly different VAT burdens due to a special scheme. This implies:

• Not creating unjustified competitive advantages for those under the scheme compared to those taxed under the general scheme.
• Avoiding that the scheme encourages relocation of activities or artificial use of structures in other Member States.
• Limiting the scheme to sectors or situations where simplification is necessary and proportionate.

In evaluating derogations, the Commission and Council assess whether the scheme may distort intra-community trade or cause consumption shifts between Member States. If these risks are high and sufficient safeguards are not observed, authorization may be denied or limited.

5. Proportionality, transparency, and control

Finally, special schemes must be proportionate to the pursued objective and accompanied by adequate control and evaluation mechanisms. This translates into:

• Limited scope to operators or sectors where the administrative burden of the general scheme is clearly excessive or the risk of fraud particularly high.
• Possibility of voluntary exit from the scheme (opt out), when provided by the Directive, to preserve business neutrality.
• Adapted but sufficiently robust registration, invoicing, or declaration systems to prevent abuse.

Additionally, national measures introducing these schemes must respect EU primary law (non-discrimination, freedom of establishment, freedom to provide services) and be transparent: published in internal legislation and, where applicable, clearly referring to the Council authorization decision.