We have previously discussed the special VAT regime for electronic services that stipulates their location at the recipient's premises.
E-commerce is experiencing strong growth in terms of business volume and, in order to facilitate its management, to reduce the burden on micro-enterprises established in a Member State that occasionally provide such services to other Member States of having to comply with VAT obligations in Member States other than their Member State of establishment, from this financial year 2019, in accordance with Directive 2017/2455 of 5 December, a threshold is established at Community level which, if not exceeded by said services, will imply that they continue to be subject to VAT in their Member State of establishment.
Thus, from 2019 onwards, an exception to the general rule (taxation at destination) is established, with electronic services being considered as being provided in the country where the provider is established when the following conditions are met:
- The supplier is established or, in the absence of an establishment, has its permanent address or habitual residence in a single Member State.
- The services are provided to persons who are not taxable persons and who are established or have their permanent domicile or habitual residence in a Member State other than the Member State referred to in point (a).
- The total amount, excluding VAT, of the supplies mentioned in point b) during the current calendar year does not exceed 10,000 euros, or the equivalent in national currency, nor has it exceeded that amount during the preceding calendar year.
If the threshold of 10,000 euros is exceeded during the year, the application of the general rule will be mandatory from that date onwards
The Community Directive on this matter indicates the obligation for Member States to grant the right to choose whether the place of performance is determined in accordance with the general rule or the special rule, a choice which, in any case, must be applied for two calendar years.
We hope you find this information useful and we remain at your disposal to assist you with the necessary procedures for the proper fulfillment of your tax obligations, both here in Spain and in any other country thanks to our participation in the prestigious international group MGI.
If you require further information or have any questions, please contact us via email at ambit@ambitassessor.com or at our offices.
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A graduate in Business Administration from the University of Barcelona, she has furthered her training in tax and accounting by attending courses and seminars offered by the EAE Business School, the College of Economists, the Bar Association, and the Terrassa Chamber of Commerce.
She combined her studies with work in the family business and as a substitute in the production audit department of Bimbo SA.
She has spent her professional career at Àmbit Assessor, where she joined in 1991 to support the accounting and tax department, becoming a consultant a few years later.
Since 2000, she has been the managing partner of the company.
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