Spanish Supreme Court limits tax authority's power over self‑employed module exclusions

The Spanish Supreme Court ruled that the tax agency cannot keep a self‑employed taxpayer out of the 'módulos' regime if the liquidation that triggered the exclusion is fully annulled. The decision stems from a case involving a farmer who was removed from the regime in 2018 after a partial activity in Portugal; the regional tax court nullified the liquidation because the inspection process denied the taxpayer a proper defence. The Supreme Court clarified that an annulled liquidation has no effect on subsequent years, forcing the agency to find a new legal basis to maintain any exclusion.

In a related ruling, the Central Economic‑Administrative Tribunal (TEAC) affirmed that the Spanish Tax Agency must receive proof that a corrective invoice has been sent to the client before accepting a VAT rectification. Without documented evidence of delivery—such as a certified mail receipt or email confirmation—the agency will reject the correction and the taxpayer must pay the original VAT amount. This doctrine follows the Supreme Court’s March 2025 ruling on the need for the recipient to be aware of any invoice amendment.