Regime of the Union

1. Definitions

• Entrepreneur or professional not established in the Member State of consumption: any entrepreneur or professional who has established the headquarters of his economic activity in the territory of the Community or who has a permanent establishment there, but who does not have said headquarters in the territory of the Member State of consumption or has a permanent establishment there .

• Member State of Identification:

  • The Member State in which the businessman or professional has established the headquarters of his economic activity.

  • When the businessman or professional does not have the headquarters of his economic activity established in the Community, the only Member State in which he has a permanent establishment will be considered.

  • When the businessman or professional does not have the headquarters of his economic activity established in the Community, but has a permanent establishment in several Member States, the State he chooses from among the Member States in which he has a permanent establishment.

  • When the businessman or professional does not have the headquarters of his economic activity established or has any permanent establishment in the Community, the Member State in which the dispatch or transport of the goods begins and, if there is more than one, the Member State in which that I choose.

  The option for a Member State will be binding as long as it is not revoked and will be valid, at least, during the calendar year in which the option is exercised and the two following years.

• Member state of consumption:

• In the case of supplies of services, the Member State in which the provision of services is considered to take place.

• In the case of intra-Community distance sales of goods, the Member State of arrival of the dispatch or transport of the goods to the customer.

• In the case of deliveries of goods by an interface, when the dispatch or transport of the delivered goods begins and ends in the same Member State.

2. Scope

They may benefit from the Union regime:

• Entrepreneurs or professionals established in the Community, but not in the Member State of consumption, who provide services that are considered provided in the latter, to recipients who do not have the status of entrepreneur or professional.

• Entrepreneurs or professionals who carry out intra-community distance sales of goods.

• The electronic interfaces that carry out internal deliveries of goods under the conditions provided for in article 8 bis.b) of this Law.

The Union scheme will apply to:

• All services provided by entrepreneurs or professionals covered by this regime who are located in a Member State other than the one in which the entrepreneur or professional covered by this special regime has the headquarters of its activity or a permanent establishment.

• All intra-community distance sales carried out by businessmen or professionals covered by this regime.

• All internal deliveries made through electronic interfaces covered by this regime under the conditions provided for in article 8 bis.b) of this Law.

3. Identification for the purposes of this regime

The operator number for the purposes of the Union Regime when Spain is the identification member state will be the tax identification number already assigned by the State Tax Administration Agency to the businessman or professional.

4. Formal obligations

The formal obligations in case Spain is the identification member state are the following:

• Have a tax identification number.

• Declare the start, modification or cessation of operations under this special regime (form 035).

• Submit a self-assessment for each calendar quarter, regardless of whether you have carried out operations to which this special regime applies.

  The self-assessment will be submitted during the month following the period to which it refers.

• Enter the tax corresponding to each self-assessment within the deadline for submitting the self-assessment.

• Keep and maintain a record of the operations included in this special regime.

  This record will be available to both the Member State of identification and the Member State of consumption and will be kept for a period of ten years.

• Issue and deliver invoices for all operations covered by this special regime.

5. Modification of self-assessments

Any modification of the figures contained in the self-assessments presented will be made in the self-assessment corresponding to a subsequent period presented within a maximum period of three years from the date on which the initial self-assessment that is intended to be modified should have been submitted.

6. Deduction of contributions borne

• In the event that Spain is the member state of identification, the businessmen or professionals covered by this special regime will not be able to deduct in the periodic self-assessment corresponding to this regime (form 369) the fees borne in the acquisition or import of goods and services destined to carry out the operations covered by it.

• For the fees borne in the territory of application of the Tax:

  1. If, in addition to the operations included in this regime, they carry out others for which they are required to submit periodic VAT self-assessments, they will be deducted in said self-assessments.

  2. If they do not carry out these other operations and are not established in the Community, they will request the refund through the procedure provided for in article 119 bis of the VAT Law , without requiring that the existence of reciprocity of treatment in favor of businessmen or professionals established in the territory of application of the Tax, nor the designation of a tax representative in Spain.

• For fees borne in other Member States:

  1. If they are established in the territory of application of the Tax, they will request the refund through the procedure provided for in article 117 bis of the VAT Law .

  2. If the Tax or the rest of the Community are not established in the territory of application, they will request the refund by the procedure provided for in the regulations of the Member State in which they have been supported in the development of Directive 86/560/ EEC , of the Council, of November 17, 1986, without being able to require the recognition of reciprocity of treatment or the designation of a tax representative in that Member State.

• In the case of businessmen or professionals based in the Canary Islands, Ceuta or Melilla, who are not established in the territory of application of the Tax or in the rest of the Community and who do not carry out operations other than those under the special regime that require them to submit self-assessments under the general VAT regime:

  1. They will request the refund of the fees paid in Spain through the procedure provided for in article 119 of the VAT Law .

  2. They will request the refund of the contributions paid in other Member States through the procedure provided for in article 117 bis of the VAT Law , in application of Directive 2008/9/ CE .