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VAT practical manual 2022.

1. Exemption to respond to the Covid-19 pandemic

Royal Decree-Law 24/2021, of November 2, modifies articles 22.Nine and 61 of the VAT Law , in order to establish the VAT exemption for imports of goods, supplies of goods and services intended for the Commission or a body or agency established in accordance with Union law, when they acquire such goods or services in response to the COVID pandemic -19 in the exercise of their functions, provided that the imported goods or the acquired goods and services are not used to make subsequent deliveries for consideration by the entity beneficiary of the exemption.

The exemptions introduced must be applied with retroactive effect from January 1, 2021 and with indefinite validity, provided that the acquisitions are linked to the fight against the pandemic.

Retroactive application will require rectification of the operations carried out by taxable persons for which VAT would have been accrued from January 1, 2021 until its entry into force, subject to the criteria general provisions contained in the VAT Law.