The Union's external regime
Entrepreneur or professional not established in the Community: any employer or professional who has established his business outside the Community and does not have a fixed establishment in the territory of the Community.
Member State of identification: the Member State for which the entrepreneur or professional not established in the Community has opted to declare the commencement of his activity
Member State of consumption: the Member State in which the provision of services takes place.
Entrepreneurs or professionals not established in the Community who provide services to persons who are not established as entrepreneurs or professionals in the Community or who have their domicile or habitual residence in the Community may benefit from this special scheme.
The scheme shall apply to all services which are to be deemed to be supplied within the Community.
3.Identification for the purposes of this scheme
The tax administration shall identify the entrepreneur or professional not established in the Community for the purposes of this scheme by means of an individual number which it shall notify electronically.
The formal obligations in case Spain is the member state of identification are as follows:
Have a tax identification number
File the declaration of commencement, modification or cessation of the operations covered by this special regime (form 035).
The declaration of initiation shall include the following information:
Name and surname or company name.
Postal and e-mail addresses.
E-mail addresses of the websites through which it operates.
Tax identification number in the country where the head office is located.
Declaration of not having in the Community the seat of activity or a permanent establishment.
File a self-assessment for each calendar quarter, regardless of whether or not you have provided services covered by this scheme (form 369).
The self-assessment shall be submitted during the month following the month of the period to which it relates.
Pay the tax corresponding to each self-assessment within the deadline for submitting the self-assessment.
Keep and maintain a register of the operations included in this special regime.
This register shall be available to both the Member State of identification and the Member State of consumption and shall be kept for a period of ten years.
Issue and deliver invoices for all transactions covered by this scheme.
Any subsequent modification of the figures contained in the self-assessments submitted shall be made in the self-assessment corresponding to a subsequent period submitted within a maximum period of three years from the date on which the initial self-assessment to be modified should have been submitted.
6.Deducting tax amounts paid
In the event that Spain is the Member State of identification, entrepreneurs or professionals under this special scheme, who do not carry out transactions other than those under this scheme that require them to submit a self-assessment of VAT under the general scheme:
They will not be able to deduct in the self-assessment under this system (form 369), the amounts paid for the acquisition or importation of goods and services used to carry out the operations covered by the system.
For tax paid in the territory where the tax applies, they shall apply for a refund in accordance with the procedure provided for in Article 119 bis of the Law, without being required to recognise the existence of reciprocity of treatment in favour of businessmen or professionals established in the territory where the tax applies.
For contributions borne in other Member States, they shall apply for reimbursement through the procedure provided for in the legislation of the Member State in which they were borne under Council Directive 86/560/EECof 17 November 1986, without being able to require recognition of reciprocity of treatment or the designation of a tax representative in that Member State.
In the case of entrepreneurs or professionals established in the Canary Islands, Ceuta or Melilla:
They shall apply for reimbursement of the input tax paid in the other Member States (with the exception of the input tax paid in the territory where the tax applies) through the procedure provided for in Article 117a of the VAT Act .
They shall apply for a refund of the input tax paid in the territory of application of the tax by means of the procedure provided for in Article 119 of the Law on VAT.
In the case of traders or professionals who, in addition to the transactions covered by the special scheme, carry out other transactions that require them to submit a self-assessment of VAT under the general scheme, the input VAT will be included in this self-assessment.