Congress will approve today the modification of the Economic Agreement

Today, the Congress of Deputies will foreseeably approve the bill by which It’s changing Law 12/2002 of Economic Agreement to adapt it to new community regulations on cross-border trade and the tax figures approved by the Government. All the groups have already announced their vote in favor, except for Vox and Ciudadanos, who have submitted amendments to the entirety, so no surprises are expected.

This modification of the Agreement, resolved by the single reading process, was agreed between the General State Administration and the Basque Government and the three provincial councils, at the meeting of the Mixed Commission of the Economic Agreement held on July 29.

Specifically, as determined by the Mixed Commission, the adopted amendment will allow the conclusion of the Tax on Certain Digital Services and the Financial Transactions Tax, as well as the special VAT regimes for cross-border e-commerce, which involve the modernization and simplification of this tax.

Both figures are incorporated into the Concert as Concerted taxes of state regulations, so that the demand for payment of the tax by the provincial councils will be produced by applying the same substantive and formal rules established by the State at a general level.

In both figures, the taxpayers will pay tax to the provincial councils, the State Administration or both administrations. They will do so in proportion to the volume of operations subject to the tax carried out in each territory during the settlement period in the case of the Tax on Financial Transactions, and to the volume of digital services rendered in each territory in the Tax on Certain Digital Services. The inspection competence will be assigned based on the taxpayer’s fiscal domicile.