If you have a hairdresser, a barbershop or a beauty center and you invoice less than €85,000 per year, there is a change that can directly affect your income: you could earn up to 21% more for each service you perform.
After months of uncertainty and pressure from Europe, the Government has changed its position and has announced that it will apply the European directive that allows small businesses to invoice without VAT.
A change that can completely transform the profitability of the sector.
The Government’s change of criteria on VAT on hairdressers
For years, Spain has been an exception within the European Union in terms of VAT for small businesses.
While other countries already applied the exemption for the self-employed and micro-SMEs, here they continued to force hairdressers, barbershops and beauty centers to pass on 21% VAT on each service.
However, the situation has changed.
The Government has announced that it will finally apply the European directive that allows these businesses to be exempt from VAT if they do not exceed a certain annual turnover.
Why did Spain not apply this measure?
The delay in the application of this regulation has not been accidental.
Spain was denounced to the European institutions for not having transposed the directive within the deadline, since it should have entered into force on January 1, 2025.
The main reason has always been economic: applying this measure would mean not collecting around 600 million euros.
However, the current context – marked by political pressures and the need to approve economic measures – has led to this change in position.
How much money can you earn without VAT in your hairdresser
To understand the real impact of this measure, let’s look at it with a simple example.
Imagine a service with a price of €15.
Currently in Spain:
- €3.15 corresponds to VAT (21%)
- €11.85 is real income
With the new regulations:
- VAT would be 0€
- The €15 would be income for the business
The difference is direct.
This means that you could increase your revenue by 21% without raising prices.
In annual terms, a business with a turnover of €40,000 could earn approximately €8,400 more.
When will the VAT exemption on hairdressers come into force?
Although the government has announced the change, the measure is not yet immediate.
It must first go through parliamentary procedure and be developed at the legal level.
Everything suggests that its application could coincide with the entry into force of Verifactu in 2027, which would facilitate its integration into digital invoicing systems.
Therefore, although the change is underway, we will still have to wait to see it applied in a real way in the day-to-day of business.
What this change means for hairdressers and barbershops
The elimination of VAT for small businesses can have a very positive impact on the sector.
It will improve profitability without the need to raise prices, increase competitiveness against other businesses and free up resources that can be reinvested in the growth of the premises.
In addition, it is a step towards bringing it into line with the rest of European countries, where this measure is already a reality.
How to prepare for VAT-free invoicing
Although the measure is not yet active, preparing in advance is key.
The change will not only affect prices, but also the way of invoicing, managing revenues and controlling the business.
Having a flexible system will be critical to adapting quickly when regulations come into force.
At Wilapp we are prepared for your VAT-free business
We know that VAT management is one of the biggest challenges for hairdressers and barbershops.
That’s why at Wilapp we have developed an invoicing system prepared to adapt to this type of change.
As soon as the law comes into force, you will be able to switch to a VAT-free model with a single click, without complex configurations or the need to resort to third parties.
This way you can focus on what’s important: your business and your customers.
