The Spanish government is set to intensify its efforts in curbing tax fraud by foreign vendors in the country. The move comes as part of the government’s commitment to tightening the country’s tax system and preventing tax evasion.
According to a recent report in El Economista, Spain’s tax agency, Hacienda, will ramp up its monitoring of foreign vendors operating in the country. The agency will be paying close attention to businesses that sell goods or services online. Especially those that are not registered for VAT in Spain.
Non-compliant businesses will face severe penalties
The move is aimed at preventing tax fraud and ensuring that foreign vendors comply with Spanish tax laws. The tax agency will be using advanced technology and data analysis tools to identify foreign vendors who are not paying their fair share of taxes.
The new measures are expected to come into effect later this year. Moreover, they are expected have a significant impact on foreign vendors operating in Spain. The tax agency has warned that non-compliant businesses will face severe penalties, including fines and even criminal prosecution.
Tax evasion is a major concern for the Spanish government
The move is part of a wider crackdown on tax evasion in Spain, which has become a major concern for the government. The country lost an estimated €70 billion in tax revenue in 2019 alone due to tax evasion. This is according to a report by the European Commission.
New tax agency for the country’s tax system
Consequently, the Spanish government has introduced a series of new measures. These are aimed at tightening the country’s tax system and preventing tax fraud. Furthermore, they include the introduction of a new digital tax, to be levied on tech giants like Google and Facebook. And, also the creation of a new tax agency, which will be responsible for overseeing the country’s tax system.
The move by Hacienda to tighten its monitoring of foreign vendors is a welcome development in the fight against tax fraud. The government’s commitment to preventing tax evasion and ensuring that all businesses pay their fair share of taxes is commendable and will help to build a fairer and more just tax system in Spain.