Registration in the ROI to apply the VAT exemption to your intra-community transactions.
As many of you already know, intra-Community transactions are subject to a special VAT taxation system. Generally, if the recipient of the intra-Community goods or services is registered in the VAT Information Exchange System (VIES), the invoice will be exempt from VAT. Therefore, in this article, we want to inform you how to register in the VIES if your company is going to carry out intra-Community transactions, so that you can apply the VAT exemption.
What is the Register of Intra-Community Operators (ROI) and the VAT No.?
The Register of Intra-Community Operators (ROI) is a census of professionals and entrepreneurs who carry out operations involving the provision of services or the delivery of goods or the acquisition of goods or services with companies or professionals from another Member State of the European Union (EU).
Professionals and entrepreneurs who are part of the Register of Intra-Community Operators (ROI) will be assigned a VAT number or Intra-Community VAT number, which will consist of adding the initials ES to the beginning of the VAT number, i.e. VAT number = ES + VAT number.
The VAT identification number (NIF-IVA) will be assigned to the following persons or entities:
- Businesses or professionals who make deliveries of goods or intra-community acquisitions of goods subject to the Tax.
- Businesses or professionals who are recipients of services provided by businesses or professionals not established in the Spanish mainland and Balearic Islands
- Businesses or professionals who provide services that, by application of the rules of location of the same, are understood to be provided in a Member State other than Spain
- Legal entities that do not act as entrepreneurs or professionals, when they make intra-community acquisitions of goods subject to VAT.
How do I apply for a VAT number?
Individuals, businesses, professionals, or entities that intend to carry out intra-Community transactions of goods and services must register beforehand in the Register of Intra-Community Operators to obtain a VAT identification number (NIF-IVA). To do so, they must submit the census declaration (form 036) requesting registration in the Register of Intra-Community Operators, checking box 582, and indicating the expected date of the first intra-Community transaction in box 584.
After the application for registration in the VAT Information Exchange System (VIES) is submitted, it is very common for the Tax Agency to carry out a series of checks to ensure the applicant entity's need to be included in the VIES, in order to prevent possible fraud. This can lead to a considerable delay in obtaining the VAT identification number.
In these checks, it is very common for an inspector from the Tax Agency to visit the address of the entity's activity in the weeks following the application for registration in the Register of Intra-Community Operators.
During the visit to this premises, the inspector will want to verify the existence of the business activity at the declared address and confirm the company's stated purpose and its operation at the reported address. Therefore, it is advisable that when applying for a VAT identification number (NIF-IVA), a basic business structure already exists, including employees registered with social security, offices, establishments open to the public, a goods receiving center, or clients.
In addition, the inspector will want to verify that the activity is carried out regularly, and will look for reasonable evidence to show this, such as orders, regular deliveries, the existence of customers and suppliers, etc.
If the Tax Agency assigns a VAT number, this will mean that the business owner, professional, or entity will be included in the Register of Intra-Community Operators or VIES census (VAT Information Exchange System). However, if the Tax Agency has not issued a decision within three months, the assignment of the requested number may be considered denied.
How to verify if a business owner, professional or entity has a VAT number?
The Spanish Tax Agency's Electronic Office offers a service for checking the status of taxpayers in the register of intra-Community operators, known as the VIES query. https://www.agenciatributaria.gob.es/AEAT.sede/tramitacion/ZZ09.shtmll This link allows you to check the validity of the VAT identification number (NIF-IVA) of Spanish intra-Community operators without needing an electronic certificate. However, to check the validity of the VAT identification number (NIF-IVA) of other non-Spanish intra-Community operators, you will need an electronic certificate from the Spanish Royal Mint (Fábrica Nacional de Moneda y Timbre).
According to the Spanish Tax Agency, it is the seller's responsibility to ensure their client has a valid VAT number (NIF-IVA) to benefit from the VAT exemption on invoices issued to professional clients or intra-Community businesses. Therefore, the VIES register is very helpful, as it facilitates consultation for intra-Community operators who will be carrying out transactions with clients within the European Union. If the recipient of the goods or services is registered in the VIES register, the invoice will be exempt from VAT.
Finally, we would like to emphasize that confirmation of the validity of a VAT number and its assignment to a specific taxable person is one of the pieces of evidence supporting the exemption of intra-Community supplies of goods or the non-applicability of VAT to services provided due to their location in another Member State. Therefore, we recommend that you check the validity of your intra-Community customers' VAT numbers in the VIES system each time you need to issue an intra-Community invoice.
If you require further information or have any questions, please contact us via email at ambit@ambitassessor.com or at our offices.
Do you have any questions about this topic?
Our team of expert advisors will help you resolve any issues related to our services.
Contact us now
A graduate in Business Administration from the University of Barcelona, she continued her education with a Postgraduate Diploma in Accounting and Management Control from Pompeu Fabra University, and completed various courses in tax and fiscal matters offered by the Terrassa Chamber of Commerce, the Barcelona Bar Association, and the Center for Financial Studies. Before joining Àmbit Assessor in 2001 as a tax and accounting consultant, she worked as an administrative assistant at Caixa Manresa and Banc Sabadell and as a tax information call center operator at the Spanish Tax Agency. For three years, she served as treasurer of the L'Alzinar Recreational and Cultural Society, a position she held concurrently with her work at Àmbit Assessor.
Latest posts by Maribel Isart Llorente
(see all)
Related
