In recent years, Spain has fallen behind the rest of the OECD in terms of tax reform. Its corporate income tax of 30 percent is higher than the OECD average of 25 percent and its income tax is high and very progressive compared to other member countries.
Under the Spanish self-billing procedure, a customer can issue an invoice in the name of and on behalf of the supplier, for the goods and services supplied to the customer. The set-up of a self-billing process in Spain requires the signature of a specific legal self-billing contract between provider and customer, transferring the responsibility to create the invoice to the customer (the buyer).
By means of this new post, we would like to provide readers with a brief overview of the situation in Spain with regard the Illegal Assignment of Workers, including the requirements to be fulfilled in order to comply with the Law, the potential consequences in case of non-fulfilment and a reference to recent Law cases.
Changes to Spain’s traditional rigid labour laws were introduced on February 10th 2012 by means of the RDL[1] 3/2012, de 10 de febrero, de medidas urgentes para la reforma del mercado laboral. New regulation entered into force the day after its publication in the Official State Gazette (B.O.E.) on February 11th, 2012. A few months later, in July, said regulation was further developed by means of Law 3/2012, de 6 de Julio, and it came into force on July 8th, 2012.
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