Spain’s Order HAC/1161/2026 sets who may use the modules system, the simplified VAT regime and the special VAT regime for agriculture, livestock and fishing in 2027.
Spain published Order HAC/1161/2026 on 5 November 2026 in the Official State Gazette (BOE). It sets the conditions for the objective estimation method for the self-employed and small businesses, known as the modules system. It also covers the simplified VAT regime and the special VAT regime for agriculture, livestock and fishing, all for the 2027 tax year. The order takes effect the day after its publication.
Eligibility for 2027
Taxpayers may apply the modules system in 2027 only if their 2026 income and purchases stayed within the following limits, alongside activity-specific caps on employees and vehicles:
- total income of EUR 250,000 a year across all economic activities, excluding agricultural, livestock and forestry activities;
- EUR 125,000 a year for operations where an invoice must be issued because the client is a business or professional;
- purchases of goods and services of EUR 250,000 a year across all activities, excluding capital assets; and
- total gross income of EUR 250,000 a year for agricultural, livestock and forestry activities.
The simplified VAT regime and the special VAT regime apply under the same statutory limits and sector-specific employee or vehicle caps. Limits may also be based on metrics such as mussel rafts.
For threshold calculations, operations carried out by spouses, ascendants, descendants or entities under income attribution schemes must be aggregated where they perform identical or similar activities under shared management.
Continuity and the 5% reduction
The order keeps the modules, signs, indices and application instructions from the previous year’s Order HAC/1425/2025 for both the personal income tax (IRPF) and simplified VAT (IVA) regimes. A general 5% reduction applies to the net yield of modules (the deemed taxable profit) for all taxpayers using the objective estimation method in 2027.
Relief for agriculture and livestock
To ease rising input costs, the order provides targeted relief for 2026 in these sectors:
- a reduction of prior net yield by 35% of the purchase price of documented agricultural diesel (gasóleo agrícola) bought in 2026;
- a reduction of prior net yield by 15% of the purchase price of documented fertiliser purchases made in 2026; and
- an increase in the general net yield reduction for agricultural and livestock activities in 2026 to 10%, from the standard 5%.
Deadlines for renunciation
Taxpayers who wish to renounce either simplified regime for 2027, or revoke an earlier renunciation, must do so between the day after publication in the BOE and 31 December 2026. Renunciation is also deemed to have taken place if the taxpayer files their first quarterly tax return (declaración-liquidación) of 2027 under the general tax regime.
With the framework largely unchanged, small businesses and self-employed workers in Spain will need to check their 2026 figures against the limits before deciding whether to stay in the modules system.
