Politics · Spain · 5 hrs ago
Government plans new RTVE VAT measure after Congress rejected earlier decree
Spain’s government plans to change how the state broadcaster RTVE’s VAT costs are treated.
It will use a regulation rather than a decree-law, which does not need approval by Congress.
Congress rejected an earlier decree-law on the issue in July, by 178 votes to 172.
RTVE’s VAT difficulties stem in part from ending commercial advertising in 2010, which reduced its income subject to VAT and its ability to deduct the tax it pays.
Disputes with the tax authority over deductions could leave the broadcaster facing additional bills; the disputed amount is described as a potential €941 million hole in its accounts.
The government also plans to approve a new contract setting out RTVE’s public-service work, using the current framework.
It intends to complete both measures before entering caretaker status, with general elections called for 29 November.
The Government plans to use a simple royal decree to address RTVE’s VAT-related funding problem, after Congress rejected an earlier decree-law.
The proposed change would redefine the net cost of RTVE’s public service and could address a potential €941 million gap in its accounts.
The Government also intends to approve a new contract-programme for RTVE before it enters caretaker status.
RTVE president José Pablo López told union representatives about the plans at a meeting, according to a union statement.
The Government aims to advance both decisions ahead of general elections scheduled for 29 November.
- Who
- The Spanish Government plans the measure for RTVE, the public broadcaster.
- What
- It plans a simple royal decree to redefine the net cost of RTVE’s public service and address VAT-related funding issues.
- When
- The plans were reported on 12 October 2026. The Government intends to act before entering caretaker status.
- Where
- Spain.
- Why
- RTVE faces a potential €941 million gap linked to VAT deductions and disputes over tax liabilities.
Government
Congress
Proposed VAT measure
Government
The Government plans to use a simple royal decree to address RTVE’s VAT-related funding problem.
Congress
Congress rejected the earlier decree-law that sought to change RTVE’s financing.
The Council of Ministers approved decree-law 16/2026 to treat RTVE’s non-deductible taxes as public-service costs eligible for state compensation.
Congress rejected the decree-law’s confirmation by 178 votes to 172.
RTVE president José Pablo López told union representatives that the Government planned a new decree and contract-programme.
General elections are scheduled to take place.
- Potential VAT-related gap
- €941 million
- Earlier decree-law
- Royal Decree-law 16/2026
- Congress vote
- Rejected by 178 votes to 172
- Planned election date
- 29 November 2026
- Earlier financing law
- Law 17/2006
What people are saying
La dirección nos ha comunicado también que el Gobierno va a aprobar un decreto para redefinir el coste neto del servicio público y que antes de que el Ejecutivo entre en funciones habrá un nuevo contrato programa elaborado con el actual Mandato Marco, que está en vigor.
Sources
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