Basque Country

1. When transactions have been carried out for an amount not exceeding 10,000,000 euros in the previous year, taxes will be paid exclusively in the territory where the tax domicile is located, regardless of where the transactions are carried out.

   Example:

   A company domiciled in Cáceres has carried out the following operations in year “n-1”:

   • Has provided services located in Bilbao for an amount of 500,000 euros.
   • It has provided services located in common territory for an amount of 500,000 euros.

   As its volume of operations in year “n-1” does not exceed the amount of 10,000,000 euros, this company will present its self-assessments for VATin year “n”, for total of the operations carried out, in common territory.

   In the event that the taxpayer changes tax domicile during the year, he or she will pay taxes to the Administration in whose territory the initial tax domicile is located until the date of the change of domicile, and to the Administration in whose territorial demarcation the new domicile is located from the date of the change of domicile.

2. When the figure of 10,000,000 euros is exceeded in the previous year and the company operates exclusively in one territory, taxes will be paid exclusively in the territory in which it operates, regardless of the place where it has its tax domicile.

3. When the figure of 10,000,000 euros is exceeded in the previous year and operations are carried out in both territories, taxes will be paid in each Tax Authority in the proportion that the operations carried out in each of them represent in relation to the total number of operations carried out, regardless of the place where the tax domicile is located.

   Example:

   A company domiciled in Cáceres carried out the following operations in year “n-1”:

   • It has provided services located in Bilbao for an amount of 6,000,000 euros.
   • It has provided services located in common territory for an amount of 6,000,000 euros.

   Total trading volume: 6,000,000 + 6,000,000 = 12,000,000 euros

   6,000,000/12,000,000 x 100 = 50% (percentage of taxation in common territory)

   6,000,000/12,000,000 x 100 = 50% (percentage of taxation in the regional territory)

   Since its trading volume in year “n-1” exceeds the amount of 10,000,000 euros, in year “n” it must submit, in each settlement period, two self-assessments: one in common territory for 50% of its results and another in regional territory for the remaining 50%. These percentages will be provisional and at the end of the year, a regularization must be made according to the final percentages of the operations carried out in the current year.