VAT : distance sales in Spain

Distance sales Spain 2012 iva

What is distance selling?

Distance sales are those sales that occur without the simultaneous physical presence of the buyer and seller.  When trading between the two parties, the proposed contract is transmitted from the seller to the buyer, who accepts by any means of distance communication. In the case of Europe, distance sales occur when a member of the EU, with a VAT number, trades with another member with out a VAT registered number.

Examples of distance sales :

  • Contract made by mail
  • Contract made by phone
  • Contract made by Television
  • Contract made by radio

Distance sales generated to the State

If the value of the commercial transfer, projected throughout the calendar year exceeds or will exceed the amount of 35,000 euros for a Spanish company, the supplier must register the VAT in their own state, an take in consideration the Spanish VAT rate.

In the case of other European Member, the threshold varies according to the country :

Country Threshold  Amount
Spain € 35,000
Austria € 100,000
Belgium € 35,000
Bulgaria 70,000 BGN
Cyprus € 35,000
Denmark 280,000 DKK
Estonia 550,000 EEK
Finland Republic € 35,000
France € 100,000
Germany € 100,000
Greece € 35,000
Hungary 8,800,000 HUF
Ireland € 35,000
Italy € 35,000
Latvia 24,000 LVL
Lithuania 125,000 LTL
Luxembourg € 100,000
Malta € 35,000
Netherlands € 100,000
Poland 160,000 PLN
Portugal € 35,000
Romania 118,000 RON
Slovakia € 35,000
Slovenia € 35,000
Swedish 320,000 SEK
UK £ 70,000

Distance sales created from the State

In the case of distance sales generated to other Member State who are not register for VAT, is require to register the equivalent VAT on the commercial transfer until it reach the threshold.  Once the value exceeds the threshold in the Member State, the supplier is obligated to register in the Member State and account for VAT. If the threshold is not exceeded, the supplier can apply to account VAT in the Member State.

The legal side for SPAIN

Are excluded from the scope of Royal Decree 225/2006, the companies listed in article 5.2, as amended by Royal Decree 200/2010 of 26 February.

Law 7 / 1996 of January 15 of the Retail Trade in Article 38.2, amended by Law 1 / 2010 of March 1, envisaged the creation of the Registry of distance selling companies. This register, which is regulated by Royal Decree 225/2006 of 24 February, is a public and administrative nature, being merely informative value. Depends organically from the Directorate General of Domestic Trade, Ministry of Industry, Tourism and Trade.

This rule has been amended by Royal Decree 103/2008 of February 1, by amending the Royal Decree 225/2006 of 24 February, which regulates certain aspects of distance selling and registration Company registration in distance sales (BOE of 22 February) and by Royal Decree 200/2010 of 26 February, amending Royal Decree 1882/1978 of 26 July on channels marketing of agricultural and fishery products for food and Royal Decree 225/2006 of 24 February, which regulates certain aspects of distance selling and registration in the Register of distance selling companies, for their adaptation Directive 2006/123/EC of the European Parliament and the Council of 12 December 2006 on services in the market (BOE of March 13).

The connotations if engaged in distance sales are usually primarily for tax. These considerations are often important in the event that marks the threshold beyond Directive 2006/112 of the Council of November 28, 2006.

The most important concept to take into account distance sales tax are the thresholds which, if exceeded, VAT should be applied in the countries of destination

For deliveries below the threshold, you can opt to charge VAT in the destination country. This option is irrevocable and irreversible.

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