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 Law of the VAT, in order to establish the exemption from VAT for imports of goods, supplies of goods and services intended for the Commission or a body or agency established under Union law, when they acquire such goods or services to respond to the pandemic of the COVID-19 in the exercise of their functions, provided that the imported goods or the goods and services acquired are not used to make subsequent deliveries for valuable consideration by the entity benefiting from the exemption.

The exemptions introduced must be applied with retroactive effect from 1 January 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.