Regulation news 2020
Skip information indexMain tax measures regarding VAT included in Royal Decree-Law 3/2020 of February 4 on urgent measures by which various directives of the European Union in the field of public procurement in certain sectors are incorporated into the Spanish legal system; of private insurance; of pension plans and funds; in the tax field and tax litigation
MODIFICATION OF THE VALUE ADDED TAX LAW
Article 214 of RD-Law 3/2020 introduces the following modifications to Law 37/1992, of December 28, on Value Added Tax (LIVA) :
A) INTRA-COMMUNITY TRADE – “QUICK FIXES”
In order to incorporate Council Directive (EU) 2018/1910, of December 4, 2018, into our internal regulations, the following modifications are established:
- Sale of reserve stocks or consignment sales (art. 9.3, 9 bis, 15, 75.Uno.8 LIVA)
As of March 1, 2020 , the application of the exemption in transfers of “reserve stock” (call-off stock) of the so-called is simplified agreements for the sale of goods in consignment.
These are agreements concluded between businessmen or professionals for the cross-border sale of goods, in which a businessman (supplier) sends goods from one Member State to another, within the European Union, so that they are stored in the Member State of destination to available to another businessman or professional (client), who can acquire them at a time after their arrival.
Currently, this operation gives rise to a transfer of goods or an operation assimilated to an intra-Community supply of goods in the Member State of departure and an operation assimilated to an intra-Community acquisition of goods in the Member State of arrival, carried out in both cases by the supplier. Subsequently, when the client acquires the good, the supplier will carry out an internal delivery in the Member State of arrival in which the rule of reversal of the taxable person will apply, such condition corresponding to its client . The supplier is required to be identified for VAT purposes in the Member State of destination of the goods.
With the aim of simplifying these operations and reducing the administrative burdens of business owners, the new regulation establishes that deliveries of goods made within the framework of a consignment sales agreement will give rise to a single operation: an exempt intra-Community supply of goods in the Member State of departure carried out by the supplier, and an intra-Community acquisition in the Member State of arrival carried out by the customer when removing the goods from the warehouse. Specifically, the accrual of the operation will occur on the 15th of the month following the month in which the goods are made available to the purchaser, or on the date on which the corresponding invoice is issued, if earlier.
In any case, business owners or professionals may choose not to benefit from the simplification by failing to comply with the conditions provided for its application, which are the following:
- The seller does not have the seat of his economic activity or a permanent establishment in the Member State of arrival.
- The businessman who is going to acquire the goods has a tax identification number (N-VAT) in the Member State of arrival.
- At the time of the start of transport, the seller knows the tax identification number (N-VAT), name and surname, reason or complete company name of the purchaser.
- The goods are transported to the Member State specified in the consignment sales agreement.
- The seller has included the shipment of the goods in the Record Book of certain intra-community operations and in form 349.
- Within 12 months of the arrival of the goods in the Member State of destination, one of the following situations must have occurred:
- The goods are purchased by the businessman indicated in the consignment sales agreement.
- The goods are acquired by a businessman who replaces the initial recipient when he has a tax identification number (N-VAT) in the Member State of arrival and the seller includes the substitution in the Record Book of certain intra-Community operations and in form 349 .
- The goods are returned to the territory of application of Spanish VAT without the power of disposal having been transferred and the seller includes such return in the Record Book of certain intra-community operations.
It will be understood that a transfer of goods (art. 9.3 LIVA) has occurred when any of the indicated conditions above, in particular:
- When the goods had not been acquired by the businessman or professional for whom they were initially intended.
- When the goods were dispatched or transported to a destination other than the Member State established in the consignment sales agreement.
- In the event of destruction, loss or theft of property.
- Chain operations. (art. 68.Two.1 LIVA)
As of March 1, 2020 , the LIVA incorporates the harmonization of the taxation of “ chain operations ”.
This type of operation is carried out when the same goods, which are going to be sent or transported to another Member State directly from the first supplier to the final purchaser of the chain, are the subject of successive deliveries between different businessmen or professionals. Thus, the goods will be delivered to at least one first intermediary who, in turn, will deliver them to other intermediaries or to the final customer of the chain, existing a single intra-community transport.
In order to avoid different interpretations between Member States, prevent double taxation or the absence of taxation and reinforce the legal certainty of operators, transport will be understood to be linked:
- To the delivery of goods made by the supplier in favor of the intermediary , which will constitute an exempt intra-community delivery of goods. To do this, the intermediary will have communicated a tax identification number provided by a Member State other than Spain.
- Upon delivery made by the intermediary when he has communicated to his supplier a VAT NIF provided by the Kingdom of Spain. The delivery from the supplier to the intermediary will constitute an internal delivery subject to and not exempt from VAT and the delivery made by the intermediary to his client will be an exempt intra-community delivery.
- Exemptions on intra-community deliveries of goods. (art. 25.One and Four, 84.One.2.c', 164.One.5 LIVA)
With effect from March 1, 2020, the requirements for the application of the exemption to intra-community deliveries of goods are modified in order to strengthen the fight against fraud in this type of operations.
To this end, for the application of the exemption, together with the requirement to transport the goods to another Member State, as a material and non-formal condition, it will be necessary that:
- The purchaser has communicated to the supplier a VAT identification number ( N-VAT ) allocated by a Member State other than the Kingdom of Spain.
- The supplier has included the operation in the summary declaration of intra-community operations ( model 349 ).
B) SCOPE OF TERRITORIAL APPLICATION OF VAT (art. 3.Two.1, a) and b) LIVA)
As of February 6, 2020 , based on Council Directive (EU) 2019/475 of February 18, 2019, the Italian municipality Campione d 'Italy and the Italian waters of Lake Lugano become part of the customs territory of the Union and the scope of application of Council Directive 2008/118/EC, for the purposes of Excise Duties, but remain outside the scope of territorial application of VAT.
MODIFICATION OF THE VALUE ADDED TAX REGULATION
Article 216 of RD-Law 3/2020 introduces the following modifications in Royal Decree 1624/1992, of December 29, which approves the Value Added Tax Regulation (RIVA), in order to adapt our internal regulations to Council Directive (EU) 2018/1910, of December 4, 2018 and Council Implementing Regulation (EU) 2018/1912, of December 4, 2018 :
- Sale of reserve stocks or consignment sales: Registration book and model 349 (art. 66.1.3, 66.2 and 3, 79, 80.1.4, 80.2, 80.3, single RIVA DT)
Implementing Regulation (EU) 2018/1912 determines the information that must be included in the 'reserve stock' (call-off stock) record books, substantive requirement for the consideration of the transfer of goods to another Member State and subsequent internal delivery as a single intra-Community operation. On the other hand, the VAT Directive establishes the obligation for the seller who dispatches goods to another Member State within the framework of an agreement for the sale of goods on consignment to present the recapitulative declaration of intra-Community operations.
Consequently, with effect from March 1, 2020, the RIVA is modified to:
1 Include among those required to present the summary declaration of intra-community operations ( model 349 ) those businessmen or professionals who send goods to another Member State within the framework of sales agreements in slogan, which must indicate:
- The identification number for VAT purposes of the businessman or professional to whom the goods are intended, as well as the estimated initial amount of their value, in the declaration period relative to the date of dispatch.
- The identification number for VAT purposes of the businessman or professional who replaces the initial recipient of the goods, in the event of such substitution, in the declaration period in which it was recorded in the Record Book of certain intra-Community operations.
2 Regulate how to record these operations within the Record book of certain intra-community operations.
- The seller must record the following information:
- The Member State from which the goods have been transported and the date of dispatch.
- The VAT identification number of the businessman or professional for whom the goods are intended, assigned by the Member State to which they are transported.
- The Member State to which the goods are transported, the VAT identification number of the warehouse of the goods if different from the recipient, the address of the warehouse and the date of arrival at the warehouse.
- The value, description and quantity of the goods that have arrived at the warehouse.
- The VAT identification number of the businessman replacing the initial recipient of the goods.
- Description, tax base, quantity and unit price of the goods delivered, delivery date and identification number for VAT purposes of the acquiring businessman.
- Description, tax base, quantity and unit price of the goods whose movement gives rise to a transfer due to non-compliance with the requirements of consignment sales, date on which the circumstances occurred and reason.
- Description, quantity and value of the goods that, if applicable, have been returned and date of return.
- The businessman to whom the goods are intended or his substitute must record the following information:
- The seller's VAT identification number.
- The description and quantity of the goods sent to be made available to you.
- Description, tax base, quantity and unit price of the goods acquired and date on which the intra-community acquisition is made.
If you are responsible for the deposit of the goods, you must also register:
- The date of arrival at the warehouse of the goods.
- Description and quantity of the goods that are removed from the warehouse by the seller and are no longer at his disposal, as well as the date on which they are removed.
- Description and quantity of the goods destroyed or missing from the warehouse and the date on which such circumstance occurs or is discovered.
For those businessmen who apply the Immediate Supply of Information (SII) , the obligation to register consignment sales in the Record Book of certain intra-community operations through the electronic headquarters of the AEAT is delayed to January 1, 2021.
- Exemptions on intra-community deliveries of goods: model 349. (art. 81.4 and 81.5 RIVA)
Directive (EU) 2018/1910 provides that the declaration of intra-community delivery in the summary declaration of intra-community operations (form 349) becomes a substantive requirement for the application of the exemption.
In this sense, so that compliance with this requirement is closer in time to the date of operation, and taking into account its limited use by companies, the possibility of annual presentation is eliminated with effect from on March 1, 2020.
- Proof of intra-community transport. (art. 13.2, 13.3, 13.4.1 RIVA)
As of January 1, 2020 , Implementing Regulation (EU) 2018/1912 in its article 45 bis establishes a harmonized system of presumptions, without prejudice to the fact that admit evidence to the contrary , which aims to simplify the proof of the requirements for the application of the exemption in intra-community deliveries.
Therefore, the transport of the goods to the Member State of destination will be justified by any means of proof admitted by law and, in particular, will be proven by the following elements of evidence:
1. When the seller indicates that the goods have been transported by them or by a third party on their behalf and:
- is in possession of at least two of the following evidence (issued by independent parties of seller and purchaser):
- Signed CMR letter or document
- Bill of lading
- Air freight invoice
- Invoice of the carrier of the goods
- You are in possession of one of the evidence mentioned above together with any of the following evidence (issued by independent parties of seller and acquirer):
- Insurance policy related to the transportation of goods or bank documents that prove payment thereof.
- Official documents issued by a public authority, such as a notary, proving the arrival of the goods in the Member State of destination.
- Receipt issued by a warehouseman in the Member State of destination confirming the storage of the goods in that Member State.
2. When the seller is in possession of a written declaration from the purchaser certifying that the goods have been transported by him or by a third party on his behalf , mentioning the Member State of destination of the goods goods and:
- is in possession of at least two of the following evidence (issued by independent parties of seller and purchaser):
- Signed CMR letter or document
- Bill of lading
- Air freight invoice
- Invoice of the carrier of the goods
- You are in possession of one of the evidence mentioned above together with any of the following evidence (issued by independent parties of seller and acquirer):
- Insurance policy related to the transportation of goods or bank documents that prove payment thereof.
- Official documents issued by a public authority, such as a notary, proving the arrival of the goods in the Member State of destination.
- Receipt issued by a warehouseman in the Member State of destination confirming the storage of the goods in that Member State.
- is in possession of at least two of the following evidence (issued by independent parties of seller and purchaser):
de medidas urgentes por el que se incorporan al ordenamiento jurídico español diversas directivas de la Unión Europea en el ámbito de la contratación pública en determinados sectores; de seguros privados; de planes y fondos de pensiones; del ámbito tributario y de litigios fiscales.