VAT SPANISH REGIMEN IN DISTANCE SELLING
These sales are subject to a special tax system for VAT purposes (“Distance selling” system) which all retailers must comply with to avoid future regularisations and the imposing of fines by the Tax Authorities.
E-commerce or online selling, which consists of the sale of goods and services over the Internet, has experienced extraordinary growth in recent years. Currently, one out of every ten purchases in Europe is made online, and this trend will continue.
The principal characteristics of that special system, which is subject to harmonised regulation for all EU member states, is set out below. In the case of Spain, the system is regulated by article 68 of Law 37/1992, of 28 December 1992 (VAT Law):
- Distance selling refers to transactions performed without the buyer having to travel to the seller’s establishment (for instance, Internet or catalogue sales).
- The buyer is an individual from an EU member state who acquires a product from a seller in another member state.
- As a general rule, the sales are taxed at source, i.e., at the regulated VAT rate in the country of the seller.
- The especial regulation comes into effect when the total amount of sales to a member state exceeds a threshold approved by that member state. In the case of Spain, the threshold is set at 35,000.00 euros.
Companies engaging in distance selling in Spain which exceed the threshold of €35,000.00 are obliged to obtain a Tax ID for VAT purposes and pay the amount of VAT to the Spanish Treasury. 3.0 LAWYERS AND TAX ADVISERS can assist you in completing all the necessary formalities in this respect.
- A list of the distance selling thresholds in other EU member states is given below:
| State
|
National currency | € equivalent |
| Germany | – | €100,000 |
| Austria | – | €35,000 |
| Belgium | – | €35,000 |
| Bulgaria | 70,000 BGN | equivalent to €35,791 |
| Cyprus | – | 35.000 € |
| Croatia | 270,000 HRK | equivalent to €38,831 |
| Denmark | 280,000 DKK | equivalent to €37,557 |
| Slovenia | – | €35,000 |
| Estonia | – | €35,000 |
| Finland | – | €35,000 |
| France | – | €35,000 |
| Greece | – | €35,000 |
| Hungary | – | €35,000 |
| Ireland | – | €35,000 |
| Italy | – | €35,000 |
| Latvia | – | €35,000 |
| Lithuania | – | €35,000 |
| Luxembourg | – | €100,000 |
| Malta | – | €35,000 |
| Netherlands | – | €100,000 |
| Poland | 160,000 PLN | equivalent to €37,300 |
| Portugal | – | €35,000 |
| United Kingdom | 70,000 GBP | equivalent to €89,493 |
| Czech Republic | 1,140,000 CZK | equivalent to €42,153 |
| Slovakia | – | 35.000 € |
| Romania | 118,000 RON | equivalent to €26,353 |
| Sweden | 320,000 SEK | equivalent to €34,433 |
Autor: Laura Lamas