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The following statement is already well known: last August, the European Regulation on Artificial Intelligence (hereinafter “EU AI Act”) came into force. What is less obvious is what happens from now on. While many companies and professionals are already familiarizing themselves with its implications, a key question remains: when will authorities be able to enforce compliance and sanction violations?

The Spanish Supreme Court (SC) has raised concerns about the compatibility of Spain’s VAT law with the EU VAT Directive, specifically with respect to a domestic law prohibition on the deduction of expenses related to client entertainment. The SC has also questioned why these expenses are deductible for corporate and personal income tax purposes, but not for VAT purposes. As a result, the SC referred the issue to the Court of Justice of the European Union (CJEU) for clarification on whether Spanish national law is aligned with EU law.