1. Why are we talking about this?
The Council of the European Union has just approved Directive (EU) 2025/516 under the VAT in the Digital Age (ViDA) package. The headline: from 1 July 2028 every short‑stay tourist rental will have to charge VAT, even when the owner does not provide “hotel‑type” services.
2. Where the change comes from
- Distortion of competition: hotels were paying 10 % VAT in Spain while many private hosts were exempt.
- ViDA aims to make “digital pay like physical”, boosting revenue and closing fraud loopholes.
3. What Directive (EU) 2025/516 actually says
| Key point | Details |
| Scope | Applies to short‑term accommodation rentals — defined as a continuous letting to the same guest for a maximum of 30 nights. |
| New role for platforms | Airbnb, Booking, etc. become “deemed suppliers”: if the host is not VAT‑registered, the platform must collect and remit the tax. |
| Rate in Spain | Unless changed, the reduced 10 % VAT used for hospitality will apply. |
| Exemptions that remain | Long‑term rentals (e.g. contracts longer than 30 nights or main residence leases) stay VAT‑exempt. |
| Transposition calendar | Spain must pass its law by 30 June 2028 and apply it from 1 July 2028; it may choose an earlier date. |
4. How it will affect you if you rent out a holiday home
- Register for VAT – Get a VAT number and, if you operate across borders, consider the One‑Stop Shop (OSS) to simplify filings.
- Invoicing – Issue invoices with 10 % VAT or make sure the platform is paying it for you.
- Books and returns – Keep separate records of VATable income and deductible costs, and file quarterly returns.
- Pricing – Decide whether to absorb the tax (lower margin) or pass it on (prices 10 % higher).
5. Frequently asked questions (FAQ)
| Question | Short answer |
| Does it apply to single rooms in my house? | Yes, provided the stay is ≤ 30 nights. |
| What if I already offered breakfast or cleaning? | You were already liable for VAT; the only novelty is the platform’s new role. |
| Will I have to pay VAT in every country where I have guests? | No, the OSS lets you pay everything to the Spanish Tax Agency and the EU handles the split. |
| Can Spain bring the date forward? | Yes. Some policymakers are calling for an earlier start to ease tourism pressure in hot spots. |
6. Conclusion
VAT on holiday rentals now has a date. There are three years to adapt, but decisions on prices, registration and tech should be taken today. Edeal Homes will track Spain’s transposition rules and keep you updated.
Ready to stay ahead of 2028? Contact our tax team and turn this obligation into a chance to professionalise your holiday rental.
