New taxation system for remote selling and extension of the one-stop shop
The tenth article of Royal Decree-Law 7/2021, of April 27, transposing European Union directives on competition, prevention of money laundering, credit institutions, telecommunications, tax measures, prevention and repair of environmental damage, displacement of workers in the provision of transnational services and consumer protection, modifies Law 37/1992, of December 28, on Value Added Tax, to incorporate the modifications derived from the transposition of the Directive ( EU ) 2017/2455 of the Council of 5 December 2017, amending Directive 2006/112/ EC and Directive 2009 /132/CE regarding certain obligations regarding Value Added Tax for the provision of services and distance sales of goods, with the exception of its article 1, which was transposed by Law 6/2018, of 3 of July, of the General State Budgets for the year 2018, and of Council Directive (EU) 2019/1995 of November 21, 2019 amending Directive 2006/112/EC with regard to the provisions relating to distance sales of goods and certain national deliveries of goods.
Additionally, and completing the transposition of the previous directives, Royal Decree 424/2021, of June 15, is approved, which modifies the Value Added Tax Regulations, approved by Royal Decree 1624/1992, of December 29, the Regulations governing invoicing obligations, approved by Royal Decree 1619/2012, of November 30, and the General Regulations on tax management and inspection actions and procedures and on the development of common rules for the procedures for the application of taxes, approved by Royal Decree 1065/2007, of July 27.
The transposition of the previous directives, the rules of which have been applicable since 1 July 2021, has included important changes in the area of taxation of supplies of goods which, acquired by final consumers, generally through the internet and digital platforms, are sent by the supplier from another Member State or a third country or territory, and the provision of services made to final consumers by entrepreneurs not established in the Member State where, in accordance with the rules on the location of the taxable event, they are subject to Value Added Tax.
Furthermore, in order to reduce administrative burdens and facilitate the collection of the Tax, three new special one-stop shop regimes are introduced in Chapter XI of Title IX of Law 37/1992, of 28 December, which may be optionally used by businessmen and professionals, generally not established in the Member State where the operations are subject to the declaration and liquidation of the Value Added Tax accrued by the supply of goods and provision of services made to final consumers established in the Community.
The main modifications introduced by the aforementioned Royal Decree-Law and Royal Decree with effect from July 1, 2021 are the following:
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The modification of the community regime for distance sales through the creation of a new category of delivery of goods: intra-community distance sales. The new regime involves taxation at destination of intra-Community sales to individuals, except those made by micro-enterprises established in a single Member State that occasionally make intra-Community sales to individuals in other Member States, which will be taxed in the Member State of establishment until reaching the limit of 10,000 euros ( VAT excluded) and in the Member State of consumption once the previous limit has been exceeded, with the possibility of opting for taxation at destination still not exceeded the limit.
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The implementation of a special regime of a similar nature to the Community distance sales regime for the sales of goods imported from third countries or territories, which incorporates an exemption on the importation of those goods for which the taxable person is covered by the new import regime that is created.
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The VAT exemption on imports for goods of low value is eliminated.
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The involvement of digital platforms in the collection of VAT accrued on certain distance sales of imported goods and sales located within the Community. To this end, the necessary modifications are introduced to consider them as taxable persons in certain operations in which they intervene, in which it will be considered that they receive the goods from the supplier and deliver them to the final consumer. In order to avoid double taxation, the supplier's delivery to the platform will be exempt and will give the right to deduct.
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The unification of the ## limit determining the taxation at destination of intra-Community distance sales and telecommunications, radio or television broadcasting services and provided electronically carried out or provided by micro-enterprises established in a single Member State.
The above modifications are completed with the extension, with effect from 1 July 2021, of the one-stop shop regimes, by replacing the special regimes applicable to telecommunications, broadcasting or television services and those provided electronically, with the following:
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The external regime of the Union , applicable to services provided by entrepreneurs or professionals not established in the Community to recipients who do not have the status of entrepreneurs or professionals acting as such.
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The Union regime , applicable to services provided by entrepreneurs or professionals established in the Community, but not in the Member State of consumption, to recipients who do not have the status of entrepreneurs or professionals acting as such, to intra-community distance sales of goods and internal deliveries of goods carried out under the conditions provided for in article 8 bis.b) of the VAT Law.
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The import regime , applicable to distance sales of goods imported from third countries or territories.
As a result of the above changes, the "Mini One-Stop Shop" is now called “Single Window” or “One-Stop Shop” (OSS) and the “Import One-Stop Shop” (IOSS), being included in the one-stop shop from July 1, 2021, in addition to telecommunications, radio or television broadcasting services and those provided electronically to end consumers, the following operations:
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Intra-Community distance sales of goods.
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Distance sales of imported goods.
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All services provided to end consumers by entrepreneurs or professionals not established in the Community.
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All services provided to final consumers by entrepreneurs or professionals established in the Community but not in the Member State of consumption.
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Deliveries of goods located within the Community whose taxable subject is an electronic interface in accordance with the provisions of 8.bis.b) of the VAT Law.
The new regimes are completed with the introduction of a special modality for the declaration and payment of imports carried out by those businessmen or professionals who, fulfilling certain requirements and having the right to benefit from the import regime, do not benefit from it.