EU Says Spain Must End VAT Tax Exemption For Catholic Church

On Friday, the Commission of the European Union formally requested that Spain bring its tax arrangements with the Vatican in line with EU law. (EU Release.) It told Spain that EU tax law is violated by a 1979 agreement providing the Catholic Church an exemption from Spain's value added tax on the purchase of goods. Reporting on the development, Ireland Online pointed out that the EU did give Spain an alternative. Spain can charge the tax and then reimburse the Church for some or all of the tax that it has to pay.