Non-EU System

1. Definitions

Shall be deemed:

1. Businessman or professional not established in the Community: any businessman or professional who has the headquarters of his economic activity outside the Community and does not have a permanent establishment in the territory of the Community.

2. Member State of Identification: the Member State that the businessman or professional not established in the Community has chosen to declare the start of his activity

3. Member state of consumption: the Member State in which the provision of the services takes place.

2. Scope

Entrepreneurs or professionals not established in the Community, who provide services to people who do not have the status of entrepreneur or professional and who are established in the Community or who have their domicile or habitual residence there, may benefit from this special regime.

The regime will apply to all services provided in the Community.

3. Identification for the purposes of this regime

The Tax Administration will identify the businessman or professional not established in the Community for the purposes of this regime by means of an individual number that will be notified electronically.

4. Formal obligations

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

1. Have a tax identification number

2. Submit the declaration of initiation, modification or cessation of the operations included in this special regime (form 035).

   The initiation statement will include the following information:

   • Name and surname or company name.

   • Postal and email addresses.

   • Electronic addresses of the Internet sites through which you operate.

   • Tax identification number in the country where the headquarters is located.

   • Declaration of not having the headquarters of activity or any permanent establishment in the Community.

3. Submit a self-assessment for each calendar quarter, regardless of whether or not you have provided services covered by this regime (form 369).

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

4. Enter the tax corresponding to each self-assessment within the self-assessment submission period.

5. 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 must be kept for a period of ten years.

6. Issue and deliver invoice for all operations included in this regime.

5. Rectification of self-assessments

Any subsequent 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, who do not carry out operations other than those covered by said regime that require them to present self-assessment of VAT by the general regime:

1. They will not be able to deduct in the self-assessment that is the subject of this regime (form 369), the fees incurred in the acquisition or import of goods and services intended for carrying out the operations covered by the regime.

2. For the contributions borne in the territory of application of the Tax, they will request a refund by the procedure provided for in article 119 bis of the VAT Law , without requiring that the existence of reciprocity be recognized. of treatment in favor of businessmen or professionals established in the territory of application of the Tax.

3. For the contributions borne in other Member States, they will request the refund through the procedure provided for in the regulations of the Member State in which they have been borne in implementation of Directive 86/560/ EEC , of the Council, of November 17, 1986, without requiring the recognition of reciprocity of treatment or the designation of a tax representative in that Member State.

4. In the case of businessmen or professionals established in the Canary Islands, Ceuta or Melilla:

   • They will request the refund of the contributions paid in the other Member States (with the exception of those paid in the territory of application of the Tax) through the procedure provided for in article 117 bis of the VAT Law.

   • They will request the refund of the fees paid in the territory of application of the Tax through the procedure provided for in article 119 of the VAT Law.

5. In the event that businessmen or professionals who, in addition to the operations subject to the special regime, carry out others that require them to submit a VAT self-assessment under the general regime, the input VAT will be included in that self-assessment.