These are the main measures of Tax Simplification. See how they will impact your daily life

The Government announced a set of 30 measures within the scope of the Tax Simplification Agenda, approved by the Council of Ministers. These initiatives aim to reduce bureaucracy and make the tax system more accessible to taxpayers and companies. The implementation of these measures is scheduled to take place between 2025 and 2026. Find out about the main changes planned.

Main measures announced

1. Medical Certificate of Multipurpose Disability:
   • Creation of automatic communication between medical boards, the Tax Authority (AT) and Social Security, allowing faster access to tax benefits and social support.
2. Elimination of paper ledgers for VAT:
   • Taxpayers without organized accounting will now classify invoices directly on the Finance Portal, eliminating the need for physical books.
3. Dematerialization of transport notes:
   • The regime for goods in circulation will be simplified, eliminating the requirement for paper documents when transporting goods.
4. Simplification in issuing electronic invoices:
   • Development of new features in invoicing applications to facilitate the issuance process.
5. Simplification of VAT refunds:
   • Procedures for granting refunds will be clarified, allowing the taxpayer to provide guarantees to speed up the refund process.
6. Change in payment of the Single Circulation Tax (IUC):
   • Payment will now have a single deadline, December 31st, and can be made in two installments depending on the amount.
7. Review of Simplified Business Information (IES):
   • It aims to reduce the complexity of the IES annual submission process by companies.
8. Pre-filling the annual IRC declaration (Model 22):
   • It will facilitate compliance with tax obligations, with the entry of pre-filled data.
9. Withholding tax for amounts less than 25 euros:
   • It is no longer mandatory, simplifying procedures for small incomes.

Other relevant initiatives

In addition to the measures mentioned, the Tax Simplification package includes efforts to digitize more administrative processes, reduce the complexity of interactions with the Tax Authority and promote transparency, as explained by . These initiatives seek to ease the administrative burden for small businesses and individuals, while simplifying access to tax benefits.

For example, the integration of digital systems will allow more effective communication between different public entities, speeding up response times for requests and document submissions. Measures such as the dematerialization of transport documents and the pre-filling of forms can generate significant savings in time and resources for companies.

Expected impact

These measures aim to modernize the interaction between taxpayers and the tax system, reducing bureaucracy and promoting digitalization. In addition to increasing efficiency, they aim to make tax processes more transparent and accessible for companies and individuals. In the long term, these changes are expected to boost taxpayer confidence in the system and encourage greater tax compliance.

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