1st of July comes into force on Royal Decree-Law 7/2021, transposing EU directives on competition, prevention of money laundering, credit institutions, telecommunications, tax measures which, among other changes, introduced important changes in VAT, especially in the treatment of distance sales of goods and services.
What is distance selling?
They are those sales made by companies or entrepreneurs and professionals who make deliveries of goods dispatched or transported by the seller or a third party on his behalf from one Member State to another different to recipients who are considered final consumers.
When such sales Member States other than the territory of application of VAT exceed 10.000 euros per year, they will be taxed with the VAT of the country of destination of the merchandise. These sales will not be subject to Spanish VAT due to localization rules.
VAT of the destination country shall be paid through the website of the AEAT with the Model 369 identifying the country, sales and VAT to enter. Form 369 must be submitted every calendar quarter.
How to benefit from the OSS system?
This system is optional, since the company or entrepreneur can choose to establish itself in the different States of destination of the goods.
To benefit from the OSS system, the company or entrepreneur must present Form 035, until the 10th of the month in which the OSS system is applied.
How to declare it in the VAT Record Book?
These sales must be recorded in the VAT register book. If the company is subject to the SII, they must be declared with key 17.
The register must include the following data:
Member state of consumption.
Type of service provision performed or the description and quantity of the goods delivered.
Date of realization of the operation.
Tax base, type and amount owed of the tax (indication of currency).
Any subsequent increase or reduction of the tax base.
Date and number of payments received.
Information contained in the invoice in case of issuance.
Information used to determine the customer's place of establishment in the provision of services and the place where transportation begins and ends.
Any proof of possible returns of goods, including basis and type.