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VAT TAX CHANGES
A Spanish Tax office resolution related to the VAT rules was published last 29th of December in order to adopt the CE directive 2008/8/CE.
Important changes in the VAT rule referred to the CEE services will be applicable form 1st of January 2.010. In general terms, a CEE service transaction from a Spanish entrepreneur to a CEE enterpriser will not be subject to Spanish VAT, since the CEE enterpriser (service recipient) will be liable to the VAT tax in his/her/its country, putting into practice the "VAT reverse system" mechanisms. Both, Spanish and CEE entrepreneur will have to be registered in the CEE Transactions Data Base of their corresponding Countries, called in Spain "Registro de Operador CEE" and to obtain the relevant VAT numbers. Quarterly or monthly tax declarations will have to be submitted in this respect. Otherwise a CEE service transaction from a Spanish enterpriser to a CEE final consumer will be subject to Spanish VAT.
However, special circumstances exist that generate changes of direction of the above mentioned VAT general rules. For example, there are services rendered to CEE entrepreneurs that are subject to Spanish VAT due to the fact that they are always considered as consumed in Spain, such as among others:
- Services related to Spanish properties
- Hotel, Restaurant, Catering Services rendered in Spain
- Conferences, Events organized and carried out in Spain
On the other hand the Spanish VAT refund system for non-Spanish established entrepreneurs is suffering an important change in its application policy in order to speed it up. Up until the end of 2.009 the non- Spanish established enterpriser had to apply for the Spanish VAT refund directly to the Spanish Tax office; however from now on they will be able to address their applications to the relevant Tax office of their countries of residence and these latter will be the ones responsible to forward the relevant VAT applications to the Spanish Tax office. The aim is to reduce the time and cost spent as well as to simplify and make easier the communication between the corresponding Tax offices and the taxpayer. The adoption of the above mentioned Directive is a great step ahead in CEE tax matter unifications.
Maria Lima
Tax Partner
ASEC Group
