Intra-EU remote sales
With regard to distance sales, it is worth highlighting the amendments introduced with effect from 1 July 2021 by Article 10 of Royal Decree-Law 7/2021 of 27 April and Royal Decree 424/2021 of 15 June on the taxation of supplies of goods, generally contracted via the Internet, to end consumers by suppliers established outside the European Union or in Member States other than the Member State of consumption.
The main modifications introduced as of 1 July 2021 are as follows:
The modification of the EU distance selling regime through the creation of a new category of supply of goods:intra-Community distance sales. The new system involves taxation at the destination of intra-Community sales to private individuals, except those made by micro-enterprises established in a single Member State that undertake intra-Community sales to private individuals in other Member States on an occasional basis, which shall be taxed in the original Member State up to the limit of 10,000 euros (excluding VAT) and in the end Member State once this limit has been surpassed, with the possibility of opting for taxation at the destination even when the limit has not been surpassed.
The implementation of a special scheme similar in nature to the Community distance selling scheme for sales of goods imported from third countries or territories, which incorporates an exemption on the importation of those goods for which the taxable person avails himself of the new import scheme that is created.
The import VAT exemption for low-value goods is eliminated.
The involvement of digital platforms in the collection of VAT due on certain distance sales of imported goods and sales located within the Community. To this end, the necessary amendments are introduced to consider them as taxable persons in certain transactions in which they are involved and in which they are deemed to receive the goods from the supplier and deliver them to the final consumer.In order to avoid double taxation, the supply from the supplier to the platform will be exempt and eligible for deduction.
The unification of the limit determining the destination taxation of intra-Community distance sales and telecommunications, radio or television broadcasting and electronically supplied services carried out or provided by micro-enterprises established in a single Member State.
The above amendments are complemented by the extension, with effect from 1 July 2021, of the one-stop-shop regimes, by replacing the special regimes applicable to telecommunications, radio and television broadcasting and electronically supplied services by the following:
The external EU regime, applies to services provided by entrepreneurs or professionals not established in the Community to recipients who are not entrepreneurs or professionals acting as such.
The Union scheme, applies to services provided by entrepreneurs or professionals established in the Community, but not in the Member State of consumption, to recipients who are not entrepreneurs or professionals acting as such, to intra-Community distance sales of goods and to the internal supply of goods carried out under the conditions laid down in Article 8a.(b) of the VAT Act.
The import regime, applies to distance sales of goods imported from third countries or territories.
As a consequence of the above changes, the "Mini One-Stop Shop" is renamed "One-Stop Shop" or "One-Stop Shop" (OSS) and the "Import One-Stop Shop" (IOSS) is created, to be included in the One-Stop Shop from 1 July 2021, in addition to telecommunications, radio or television broadcasting services and services provided electronically to final consumers, the following transactions:
Intra-Community distance sales of goods.
Distance sales of imported goods.
All services supplied to final consumers by traders or professionals not established in the Community.
All services provided to final consumers by traders or professionals established in the Community but not in the Member State of consumption.
Supplies of goods located within the Community where the taxable person is an electronic interface within the meaning of 8.bis.b) of the Law on VAT.
The new regimes are complemented by the introduction of a special modality for the declaration and payment of imports made by those entrepreneurs or professionals who, fulfil certain requirements and are entitled to use the import regime, but do not do so.