Spain Legislates To Waive VAT On Donations, Levy New Ecotaxes, (Apr 25, 2022)

Spain has enacted legislation to introduce two new environmental taxes and to waive value-added tax on goods donated to charities.

Law 7/2022, published in the Official Gazette earlier this month, provides for the introduction of a special tax on non-reusable plastic packaging and a tax on the use of landfills or waste incineration facilities. These will be introduced from January 1, 2023.

The tax rate for plastics is EUR0.45 per kilogram. The various landfill and incineration tax rates are set out in Article 93 of the Law, available only in Spanish.

The law also establishes a zero rate of value-added tax for donations of goods to non-profit entities. To be eligible, the goods must be to support activities carried out in the public interest.