Intra-Community acquisitions and intra-Community supplies
In the field of VAT the terms "Intra-EU acquisitions" and "Intra-EU supplies" are used only in the case of purchases and sales to member countries of the European Community.Such transactions are taxed in the Member State of destination and are reported on Form 349.It should be borne in mind that, for tax purposes, the Canary Islands, Ceuta and Melilla are not considered Community territory (Art. 6 Directive 2006/112/ EC).
Intra-EU acquisition is the purchase by businesspersons of goods transported by the seller (another businessperson), the buyer or a third party in the name and on behalf of the former from another Member State to the Spanish mainland and the Balearic Islands.VAT is generally settled on Form 303 where the acquirer declares the Spanish VAT accrued on the transaction which, in turn, may be deducted when the established requirements are met (Articles 92 et seq.Law 37/1992).
The following are also Intra-EU acquisitions:
The purchase of goods from another Member State where the seller is a trader and the buyer is a legal person who is not a trader and the amount of the purchases from other Member States exceeds 10,000 euros.
The purchase of new means of transport from another Member State, irrespective of the seller and the consignee (including private individuals).
The receipt of the businessperson's own goods from another Member State (transfer).
The following are not Intra-EU acquisitions, among others:
Purchases made in a Member State which are taxed under the special scheme for second-hand goods, works of art, antiques and collectors' items.These transactions are taxed in the source State.
Purchases made from an employer who is exempt from duty in the Member State from which the transport begins.
Purchases made in a Member State of goods which are installed in the mainland or the Balearic Islands before delivery.These transactions are subject to Spanish VAT.
Intra-EU supply is the supply of goods transported to another Member State of the European Community by the seller (businessperson), the purchaser or a third party in the name and on behalf of the former, when the purchaser is a businessman, professional or legal person who is not a businessman, but identified for VAT purposes in a Member State other than Spain.This operation is exempt from VAT, giving the right to deduct input VAT on acquisitions of goods and services that are affected by this activity (full exemption).
The following are also Intra-EU supplies:
The supply of new means of transport, destined for another Member State, irrespective of the seller and the consignee (including private individuals).
Transfers of the businessperson's own assets for use in his activity in another Member State.
Intra-EU supplies should not be confused with distance sales, where the recipients are private individuals.