If you have a hairdresser, a barbershop or a beauty center and you invoice less than €85,000 a year, there is something you should know —and that will probably outrage you—: you could be earning up to 21% more for each service you perform.
While much of Europe already applies regulations that benefit small businesses, Spain still does not implement a key measure that directly affects your profitability.
The question is clear:
Why do hairdressers and barbershops continue to pay VAT that does not correspond to them?
Spain vs. Europe: the problem of VAT in the beauty sector
The European Union approved a directive that allows the self-employed and micro-SMEs to be exempt from VAT if they do not exceed a certain annual turnover.
This measure, designed to alleviate the tax burden on small businesses, should have been applied in Spain on January 1, 2025.
However, to date, this has not happened.
While other countries already apply this exemption, Spain has become an exception within Europe, forcing hairdressers, barbershops and beauty centres to continue charging VAT that, according to European regulations, might not be mandatory.
The complaint to Brussels: the beauty sector says enough is enough
Faced with this situation, the beauty sector has decided to act.
The Government of Spain has been denounced to the European institutions for not applying the EU directive within the deadline, which could be a breach of European law.
This complaint brings to the table an uncomfortable reality: thousands of professionals are paying taxes that, in other countries of the European Union, are no longer required under these conditions.
How much money is a hairdresser losing due to VAT
To understand the real impact, just look at a simple example.
Imagine a hairdressing service priced at €15.
Currently, in Spain:
- €3.15 corresponds to VAT (21%)
- €11.85 is real income for the business
According to the European directive:
- VAT would be 0€
- the full €15 would be for the professional
The difference is clear.
Each service involves a direct loss of revenue. In annual terms, this can mean thousands of euros.
For example, a business with a turnover of €40,000 per year could be missing out on around €8,400.
Why does the Government not apply the VAT reduction?
The answer is not technical, it is economic.
It is estimated that applying this measure would mean a reduction of approximately 600 million euros in revenue for the State.
This explains why, despite being approved at the European level, the regulation is still not implemented in Spain.
Meanwhile, the sector continues to bear a higher tax burden than in other countries, in a context marked by rising costs, inflation and growing competition.
What hairdressers and barbershops can do now
Currently, professionals in the sector are in a situation of uncertainty.
There are two possible scenarios:
On the one hand, that pressure from Europe forces Spain to apply the directive in the short term, even through sanctions.
On the other hand, that the measure is delayed and becomes part of the political debate in the coming years, especially in electoral periods.
In any case, everything indicates that this issue will continue to be key to the future of the sector.
How this change will affect the beauty industry
If the VAT exemption is finally applied, the impact would be very significant.
Hair salons and barbershops may:
- increase your profitability without raising prices
- Offer more competitive services
- Reinvest in your business
- Improve your margins
In addition, there would be greater equality with the rest of European countries, eliminating the current tax disadvantage.
Preparing for change: key to not being left behind
Although the regulations have not yet been applied, many professionals are already attentive to this possible change.
Adapting quickly will be essential.
This means having management systems that allow you to easily modify invoicing, adjust taxes, and maintain control of the business without complications.
At Wilapp we are prepared for your tax freedom
We know that VAT management is one of the biggest challenges in the day-to-day life of hairdressers and barbershops.
That’s why at Wilapp we have developed a flexible billing system that adapts to regulatory changes.
As legislation evolves, you can switch to a VAT-free model with a single click, without the need for complex configurations or external processes.
Our goal is for you to be able to focus on your business, without worrying about the technical or tax part.
If you are tired of working with a tax burden that no longer exists in other countries, this is the time to prepare for change.
