ANALYSIS OF THE CHANGES IN VAT BY LAW 28/2014
ANALYSIS OF THE CHANGES IN VAT BY LAW 28/2014, REFORM LAW 37/1992 AND OTHER MODIFICATIONS TO THIS TAX.
With effect from January 1, 2015 (with exceptions listed below), Law 28/2014, of 27 November incorporates the following amendments to the Law 37/1992 of December 28 of the Value Added Tax (LIVA):
1 Adaptation of Law 37/1992 to the VAT Directive and ECJ case law
The scope of the tax is adjusted to the VAT Directive, excluding the territory of the Community to the French outermost regions, the Channel Islands and Aland islands and including the regions of Akrotiri and Dhekelia.
• New rules localization of telecommunications services, radio and television broadcasting and services supplied electronically.
From January 1, 2015, according to the rules of localization introduced by Directive 2006/112 / EC Directive 2008/8 / EC of 12 February 2008, when these services are rendered to a person who he is not a businessman or professional acting as such (final consumer), pass taxed at the place where the customer is established, has his domicile or habitual residence, regardless of where provider is established.
Provision of services by electronic means eg downloading a via on-line program is considered not considered buying a book by via electroinca or by e-mail but that is received at the registered physical shape if they would be if we unloaded.
Therefore all telecommunications services, TV broadcasting and electronic taxed in the Member State of establishment of whether this is a trader or professional or a final consumer, whether the provider is an employer established in the Community or outside it.
This change in the place of taxation comes with two optional special schemes that allow taxpayers to settle the tax owed for the provision of such services through a web portal «single window» in the Member State in which they are identified, avoiding having to log in each Member State in which they conduct operations (member State of consumption). We distinguish between:
– Exterior State to the Union: applicable to entrepreneurs or professionals who do not have any permanent establishment nor required to be identified for VAT purposes in any Member State of the Community. The Member State of identification shall be chosen by the employer.
– Scheme of the Union applies to European entrepreneurs or professionals providing telecommunications services, TV broadcasting and electronic to final consumers in Member States in not having his place of business or a permanent establishment. The Member State of identification is that in which the place of business or a permanent establishment.
In the field of internal regulations, the Order HAP / 1751/2014, of September 29, in force since October 1, 2014, approves the registration form that allows entrepreneurs or professionals benefiting from these special arrangements and designating Spain as a Member State of identification.
2 Tax rates of medical devices.
Consequence of the ECJ Judgment of 17 January 2013 in Case C-360/11, the medical equipment and appliances, medical devices other appliances, medical products and hospital are taxed, in general, 10% to 21%, maintaining the reduced taxation only 10% for those products, their objective characteristics, are designed to alleviate or treat disability, for the exclusive personal use of persons with physical, mental, intellectual or sensory impairments type.
The list of products that applies the reduced rate of 10%, among which are the glasses and contact lenses, orthotics, prosthetics and orthoprosthesis (except for persons with disabilities who are taxed at 4%), chairs, crutches and devices for dialysis and breathing, he joined a new eighth paragraph of the Schedule to the Act. (See the end of this document)
Are taxed from 4% to 21% medicinal substances and active ingredients of medicinal products for human use, as well as intermediates for the manufacture of such drugs.
Also, increase your tax from 10% to 21% medicinal substances and active ingredients used in the production of veterinary medicines and medical equipment, aids and other appliances used for veterinary purposes.
They hold 10% taxation drugs for animal use, pharmaceutical products eligible for direct use by the final consumer (gauze, bandages and similar), napkins, tampons, panty liners, condoms and other non-medicinal contraceptives.
Maintain the 4% tax medicinal products for human use, pharmaceutical formulations, lectures and officinal preparations, vehicles for people with reduced mobility, prosthetics, orthotics and internal implants for people with disabilities. Vehicle Repair and wheelchairs
Decreases the rate applicable to the flowers and ornamental plants live from 21% to 10%. With this modification becomes the same treatment that existed until 31/08/2008 since, with effect from 31/12/2014 until 01/09/2008, the reduced rate of 10% applies only to seeds, bulbs, cuttings and other products of vegetable origin only likely to be used in the production of flowers and live plants.
3rd Special scheme for travel agents
The regulation of this special scheme is modified following the Judgment of the ECJ of 26 September 2013 in Case C-189/11:
• The scheme is applicable to any business or professional organizing travel (hotel, transportation and / or ancillary services) by removing the ban on application of the system to sales by retail travel agencies organized by wholesale tour
• the method of determining the overall tax base is deleted.
• A separate provision of output VAT (obtained quota as the result of multiplying the total price of the transaction by 6 and divide the result by 100) provided in the event that the employer or professional customer requests, thereby preventing be deleted your deduction.
Apart from the necessary modifications for the said judgment, the possibility is introduced, to exercise operation by operation, applying the general taxation as long as the recipient of the operations is a businessman or professional who has, to some extent, right the deduction or refund of input tax.
4th Taxable transactions whose consideration non-monetary.
Consequence of the ECJ Judgment of 19 December 2012 in Case C-549/11, the valuation rule amending operations whose consideration non-monetary nature, setting as such the value agreed between the parties, which should be expressed in monetary form, going as residual approach to the valuation rules of consumption compared to the current rule based on market value.
Grants 5th unrelated to price.
In order to adapt the rules to the ECJ Judgment of 14 March 2014 in Case C-151/13, the difference between the non-price subsidies, which are not part of the tax base of operations, of the consideration paid by a third party, which will be part of that.
6 Deletion of the exemption to services provided by public notaries.
Exemption to services provided by public notaries in connection with financial transactions exempt or not subject to comply with the reasoned by the European Commission of 24 October 2012. This opinion is deleted, become subject to VAT services by notaries, registrars of property and business registrars in connection with such operations (construction, subrogation or cancellation of mortgage loans among others).
7 No securing the transfer of a business or part thereof.
ECJ case law is incorporated, noting that the absence of liability shall apply in the case of the transmission of a set of elements that are or are likely to constitute an independent economic unit headquarters of the transferor and excluding explicitly the simple transfer of assets or rights. «For this purpose, it is clarified to be considered as simple transfer of assets or rights,» the transmission of data when not accompanied by an organizational structure factors of human and material production, or one of them, which may consider the it constitutes an independent economic unit. »
8th Operations carried out by public bodies
a) No subject.
The term «public authorities» is replaced by «government», incorporating a definition thereof.
Non-taxable services provided under the management commissions were established.
Statutory rises to administrative doctrine of so-called «technical-legal entities», although their content by not requiring that certain entities are participated by a single public administration, but that are entirely publicly owned expands. Once this condition shall not be subject to tax services supplied by a public entity for any government to participate in it, or for other entirely dependent on the previous government.
Within the list of activities in any case subject, trade or commercial activities of public radio and TV entities will be considered as such when generated, or are likely to generate income from non public sector advertising.
b) Deductibility of contributions supported by «dual» public entities.
It is clarified that the so-called «dual» public entities which together account for operations subject and not subject to tax may deduct, under the case law of the ECJ (Case C-437/06 – «Securenta») the taxes charged on the purchase, goods and services for the joint execution of both types of operations, based on a reasonable basis, consistent and sustained over time.
9th educational exemption.
It extends to services for children in the rendered educational center in interlectivo time, both during the school canteen and childcare outside school hours, equating the treatment in the tax services provided by the educational institution, regardless they do with their own or other means.
10th Exemptions estate
a) Exception to the exemption in the transmission of urbanized land or under development:
The requirement that the transmission is made by the developer in order to ensure tax neutrality in the process of transfer of land is deleted once the development has started.
b) Compensation Boards «no trust»
The exemption applies to deliveries and land allotments made between the Compensation Board and the owners, in order to eliminate the distortion that caused the different treatment tax purposes of performance in urbanization of these Boards is deleted, according intervene on their condition or fiduciary (in the latter case, the Board could not deduct input tax for the services of urbanization).
c) Waiver of property exemptions:
The purpose of application of the waiver of estate exemptions, not linking to the requirement that the employer or professional acquirer is entitled to the full deduction of input tax based on the probable destination in the acquisition of the property field expands, although required that the employer has a right to full or partial deduction of input to make the acquisition or based on the probable fate of acquired property tax.
11th Venue deliveries of goods subject to installation.
The supply of goods which are to be installed or assembled before making it available in the territory of application of the tax, taxed as such in that territory, removing the requirement to the cost of installing exceed 15% in relation to the total consideration.
12 Extension of deadlines for the modification of the tax base.
a) If the debtor in bankruptcy, the time to make the change in the tax base expands from 1-3 months.
b) In the case of bad credit, SME entrepreneurs who are considered taxable income may change after a period of six months as had been demanding to date or may be expected to generally within 1 year is required for all other employers .
c) With respect to operations in special regime cash basis, a special rule is introduced to declare a bad credit, so that changes in the tax base is allowed when the accrual of that scheme results from the application of deadline of December of the year immediately following the date of completion of the transaction 31, without having to wait for a new course of 6 months or 1 year which marks the rules to compute from the chargeable.
d) Special Pro Rata
Its scope is expanded, decreasing from 20% to 10% of the allowable difference in the amount of deductible contributions in a calendar year resulting from application of the general proportion compared to those resulting from the application of the special pro rata, being mandatory latter exceeded that limit.
13th Special arrangements for groups of entities.
Economic, financial and organizational entities of the group, adjusting to the VAT Directive: the requirement of the three levels of linkage is incorporated. The financial linkage requires effective control of the company through a share of over 50% in the capital or voting rights. Although this amendment is effective from January 1, 2015, transitional arrangements allow existing groups adapt to new requirements throughout 2015 is set.
They may be considered as parent company held companies do not act as entrepreneurs or professionals, for example, a holding entity.
The operations performed by this special scheme shall not be taken into account for purposes of calculating the common prorated if entrepreneurs who are active in more than one distinct sector.
14th Imports of goods
a) Exclusion of the concept of importing goods.
It specifies that import shall not constitute output areas (zones, free warehouses and other deposits) or abandonment of customs and tax regimes covered by Article 24 when that determine a supply of goods (EB) which is applicable the exemptions set out in Articles 21 (exports), 22 (related operations of exports) or 25 (intra-Community supplies of goods) of the VAT Law.
b) Transactions treated as imports of goods.
It will not be treated as imports operation off the areas that the art.23 (free zones, free warehouses and other deposits) or abandonment of customs and tax regimes within the section 24 refers to when that determine delivery goods (EB) which is applicable exemptions set out in art. 21, 22 or 25 of the LIVA.
c) imports of goods that are linked to arrangements other than customs warehousing. Drafting the article governing exemptions on customs and tax regimes is amended by adding the reference to the exemption regulated ART.65 LIVA. Moreover, in that ART.65 LIVA specified what free imports of goods related to customs warehousing procedure relating to Excise be.
d) Income tax on imports.
It is possible that certain operators, as required by regulation, may defer income tax when filing the corresponding settlement declaration (Form 303) through the inclusion of such shares in it and without having to make a deposit into the importation.
To summarize the above in case you are interested in including the fee settled through customs in their settlement declaration for the period of receipt of the document evidencing such settlement must take into account that must meet one of the two following conditions:
that its trading volume exceeded during the preceding calendar year the amount of 6,010,121,04 euros, which already has the liquidation period monthly VAT
or having a lower volume meets the following requirements:
• who are registered in the register of monthly return by express request made in November of the year preceding that in which is to take effect.
• that registration is requested by submitting census declaration in place and manner determined by the Ministry of Finance.
• who is familiar with their tax obligations
• they are not in any of the assumptions could lead to the precautionary deregistration monthly repayment or revocation of tax identification number ….
• not engage in activities that are taxed in the simplified scheme (modules).
• In the case under the special regime for groups of entities entities, the registration will only proceed when the group entities applying these special arrangements have so agreed and meet the requirements of this section.
Therefore, if trading volume is less than 6,010,121.04 euros and requested during the month of November each year registration monthly return, the settlement period of the VAT tax coincide with the calendar month and entitled to choose to include import VAT amount liquidated by Customs in their settlement declaration for the period of receipt of the document attesting the liquidation. This is not recommended if the settlements that occur are usually positive, therefore not interested submit monthly statements if we are not required because the monthly income will be made in anticipation of the income that would differ if performed quarterly.
By 2015, it will be made until January 31 of that year.
e) Taxable import and similar transactions.
The output of goods exempt areas or abandonment of exempted customs and tax regimes do not constitute imports or, if applicable, assimilated operation when intended for export or intra. This Statutory joins the criterion of the DGT (see V1213-13 of April 11, 2013).
f) deposit scheme other than customs
With effect from 1 January 2016, the use of warehousing arrangements other than customs is structured to restrict the exemption of imports of goods that are linked to this system to:
Excise goods under suspension arrangement
Goods from the customs territory of the Community
Real identified by the VAT Directive (potatoes, olives, cocoa, tin, copper …)
Moreover, holders of deposits subsidiary will be responsible for paying the tax debt corresponding to the output or abandonment thereof except in the case of goods subject to excise duty.
g) Procedure for reimbursement of VAT on imports.
With effect from April 1, 2016, the only additional provision of Law 9/1998 which establishes reimbursement by Customs for VAT on imports of goods to Customs Brokers and persons or entities acting on their own behalf and repealing on behalf of importers if they have not received the refund of VAT by these.
15th Fight against fraud
Rule reverse charge
With effect from 1 April 2015, cases of application of the «rule of reverse charge» to expand delivery:
• silver, platinum and palladium raw, powdered or semi-wrought.
• mobile phones, game consoles, laptops and digital tablets, where the recipient a reseller operator or transaction amount exceeds 10,000 euros (excluding VAT).
In appropriate cases the reverse charge, the supply of these goods must be documented on an invoice by special series, stating the words «reverse charge»
For the purpose of calculating the limit of 10,000 €, the total amount of deliveries when documented on more than one invoice, it is established that it is a single operation and has produced the artificial breakdown of it to will be addressed the sole purpose of avoiding the application of this standard.
The recipients of the operations we mean, should, where appropriate, communicate reliably express the entrepreneur or professional make delivery the following circumstances:
a) They are acting with respect to such operations, in its capacity as entrepreneurs or professionals.
b) They are acting with respect to such operations, as a reseller, which must prove by providing a specific certificate to this effect through the electronic office of the State Tax Administration Agency. The entrepreneur or professional reseller may obtain a certificate with the secure verification code via electronic headquarters of the State Tax Administration that will be valid for the corresponding date of issuance calendar year. «.
Dealer shall be deemed the employer or professional habitually engaged resale of property acquired referred to such operations.
The entrepreneur or professional dealer must notify the competent body of the AEAT your reseller status by submitting the relevant census declaration at the time of commencement of the activity, or during the previous November to the beginning of the calendar year in which it must effect.
The notice shall be deemed extended for subsequent years as the loss of such status, which should also be reported to the tax authorities by appropriate modification census declaration occurs.
16th Simplified Regime (Modules)
With effect from January 1, 2016, the limits that allow taxpayers to opt for this scheme are reduced:
The volume of revenues in the immediately preceding year for all its activities decreased from 450,000 to 150,000 euros, but are excluded from the calculation agricultural, forestry and livestock activities, whose boundary passes from 300,000 to 250,000 euros.
Acquisitions and imports of goods and services within the previous year for all its operations, excluding those relating to fixed assets decreased from 300,000 to 150,000 euros.
17th Special scheme for agriculture, livestock and fisheries.
It excludes from its scope of application to owners of farms or farms which yield the use of pine resin while it includes a resinero individual.
With effect from January 1, 2016, the limits permitted opt for this scheme are reduced: acquisitions and imports of goods and services within the previous year for all activities, excluding those relating to fixed assets decreased 300,000 150,000 euros.
18th New types of offense and sanctions
Lack of communication or incorrect communication from the recipients of certain transactions to which the rule applies reverse charge employers of their status and, where appropriate, the nature of the works (execution of work for the construction or rehabilitation of buildings or land development and real estate transfers running of warranty). The conduct is punishable by proportional fine of 1% of the tax due in respect of which the breach occurred in communication, with a minimum of 300 euros and a maximum of 10,000 euros.
Lack of provision or incorrect entry in the reverse of dues cleared by Customs for the import VAT for those operators who can defer income tax. The conduct is punishable by proportional fine of 10% of the shares not recorded.
Specific procedure of checking the import VAT.
Inspection procedures, limited testing and verification of data relating to the VAT payable on importation shall be limited in scope to tax liabilities arise solely from import operations.
When the liquidated fees relating to taxable persons covered by the system of deferral those income shall be effected by that system.
19th Entry into force.
This Act shall come into force on 01.01.2015, except for the following modifications: a) Entry into force on 01.01.2016:
• Imports of goods that are linked to arrangements other than customs warehousing.
• Simplified Regime (Modules).
• Special scheme for agriculture, livestock and fisheries.
• Regime different customs warehouse (fifth paragraph of Annex).
• Expanding the course of applying the rule of reverse charge mobile-phones, game consoles, laptops and digital tablets, etc. which will be applicable from 01.04.2015.
20th Obligations of taxpayers. Books Registration Regulation: it is modified.
It may be a general summary seat of invoices received on the same date, which shall be recorded the initial number and final invoices received allocated by the recipient, provided they are from a single provider, the overall sum of the tax base the overall tax bill and whether the operations are affected by the special regime cash basis, in which case it shall include the particulars specified in paragraph 2 of Article 61 decies of this regulation concerns, provided that the total amount set operations, excluding VAT, does not exceed 6,000 euros, and that the amount of documented operations in each of them does not exceed 500 euros, excluding VAT.
Regulation 21st billing.
Series of invoices: is added
• Those that are issued in relation to investment operations taxpayer.
• Those that are issued on special arrangements for groups of entities.
Content of invoices: is added
• In the operations that applying the special scheme for travel agents, taxpayers are not required to enter separately on the invoice issued by the fee passed on, and the tax should be understood, if any, included in the transaction price.
• In any case, the invoices in which transactions to which it is applied documenting this special scheme shall state the endorsement referred to in Articles 6.1.n) or 7.1.i).
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