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Commission calls on Spain to eliminate the discrimination of non-resident banks in the provision of payment services of Spanish taxes

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Tuesday, 07 July 2020

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The European Commission sent a letter of formal notice the 14th of May 2020to Spain to the effect that the Spanish regulations are contrary to Regulation (EU) No. 260/2012 of 14 March 2012 establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation (EC) No. 924/2009 (the SEPA Regulation), from the moment that they prevent the settlement of taxes through non-Spanish payment service providers, such as banks.

In practice and contrary to what happens with local financial entities, it is very difficult for foreign payment providers to obtain the status of “collaborating entity” of the Spanish tax authorities, which is a requisite so they can provide such tax payment services of the Spanish taxes to their clients.

According to the Commission, this is contrary to the SEPA Regulation, which harmonizes the way cashless euro payments are made across Europe, making all cross-border electronic payments as easy as domestic payments. If Spain does not act within the next four months, the Commission may send a reasoned opinion to the Spanish authorities.