Spanish VAT reverse charge
The reverse charge mechanism is designed to reduce the frequency with which companies trading across Europe must VAT register. It works across the EU. Spain uses the reverse charge system less than most other EU states.
It allows any transactions to be recorded through the VAT return of the customer, so alleviating the need for the foreign supplier to VAT register in Spain.
When is the Spanish VAT reverse charge used?
The reverse charge mechanism is applied in the following circumstances:
- Buying and selling goods in Spain if the original supplier and customer are Spanish VAT registered
- The supply of services to a Spanish VAT registered business (2010 VAT package).
- Supply of certain types of power.
- Other various minor goods.
Latest Spanish news
December 12, 2018
On 12 December, the European Commission published details of a new rule which would make large online marketplaces responsible for calculating, collecting and remitting VAT on certain B2C cross-border transactions below €150. Where goods are imported by an EU or non-EU merchant, and then sold via a marketplace in another EU country..
December 11, 2018
The Canary Island government has proposed that it reduces its VAT rate from 7% to 6.5% from 1 January 2019.
November 24, 2018
Spain is to extend its live Immediate Information Supply (SII) regime to the Canary Islands from 1 January 2019...
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