Spanish VAT Breakfast

Transcription

1 Spanish VAT Breakfast 12 April KPMG Global Indirect Tax Forum

2 New VAT regulations (yet to be approved) Javier Sanchez Indirect Tax Partner KPMG Abogados (Spain)

3 Electronic VAT books (SII) Certain taxpayers will have to keep VAT books in an electronic format through the Tax Authorities website by providing the data on all invoices within a very tight deadline Thus, there will be 2 ways of keeping VAT books: Traditional way (In-house with no specific format) Electronically through the Tax Authorities website 2016 KPMG Abogados SL, a limited liability Spanish company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity All 3

4 Questions 1 When will it enter into force? Unknown, it should have been in 2017 but it has not yet been approved 2 To whom does it apply? Only to taxpayers who file monthly VAT returns 3 What is the deadline for providing the data on each invoice? 4 DAYS in general terms as of issuance of an invoice or accounting an invoice received 4 What data has to be provided? The same as for the present VAT books plus additional data 2016 KPMG Abogados SL, a limited liability Spanish company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity All 4

5 What other changes will be introduced? Draft of VAT books The Tax Authorities will provide it every month to the taxpayer, so that it can prepare the monthly VAT return VAT returns Deadline is postponed from the 20 th to the 30 th of the following month Informative returns (Form 340, form 347, form 390) will no longer be compulsory for these taxpayers 2016 KPMG Abogados SL, a limited liability Spanish company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity All 5

6 What sanctions can be imposed? What happens if a taxpayer is not able to meet the deadline? A specific sanction has been introduced of 0,5% of the amount of the invoice with a minimum of 300 and a maximum of 6,000 per quarter What happens if a taxpayer does not fulfill this obligation? No specific sanction has been introduced There is a 1% sanction of the amount of all invoices for not keeping VAT Books In addition it can impact the recovery of the input VAT 2016 KPMG Abogados SL, a limited liability Spanish company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity All 6

7 VAT optimization Maite Vilardebó Indirect Tax Partner KPMG Abogados (Spain)

8 VAT optimization VAT grouping Quick VAT refund regime Claiming VAT on bad debts Others 2016 KPMG Abogados SL, a limited liability Spanish company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity All 8

9 VAT grouping Definition of the group Main requirements Basic level: administrative grouping Each member remains a separate taxable person Group single VAT return: cash advantage Advanced level: Special taxable base intra-group supplies The transactions are not disregarded Costs incurred intra-group on value and services (ie personnel costs, margin) are not included within the taxable base Sectorization 2016 KPMG Abogados SL, a limited liability Spanish company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity All 9

10 VAT refund regime Standard method December s VAT return, could take 6/7 months Quick method (REDEME) Claimable monthly Usually takes 1-2 months Administrative burden: monthly submission of issued and received invoicing lists (340 form) 2016 KPMG Abogados SL, a limited liability Spanish company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity All 10

11 VAT on bad debts Client s bankruptcy Tight deadlines Formalities (corrective invoice, judicial acceptance) Payment delay > 1 year (6 months small businesses) Tight deadlines Formalities (corrective invoice, notarial or judicial claim) B2B and B2C (if taxable base > 300 ) 2016 KPMG Abogados SL, a limited liability Spanish company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity All 11

12 Others Fidelity schemes VAT on discounts can be claimed based on Elida Gibbs ECJ decision without its refund to the distributor Import VAT Standard method: payment of VAT when the goods are dispatched/imported, deduction when the VAT return is submitted Special deferment method: Payment can be deferred to the VAT return (when deduction is made) neutral effect 2016 KPMG Abogados SL, a limited liability Spanish company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity All 12

13 Traditional Spanish hot topics Natalia Pastor Indirect Tax Partner KPMG Abogados (Spain)

14 Permanent establishment (PE) and intervention Concept of PE Difference between VAT and Corporate Tax Importance of being established or non established Output VAT: Who is the taxpayer Input VAT: How to recover the VAT Intervention Before VAT package: Force of attraction After VAT package: On a case by case basis decide on the intervention of the PE on each transaction with human and or material resources 2016 KPMG Abogados SL, a limited liability Spanish company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity All 14

15 Consignment structure Spain has no legal simplification regime However, through rulings the Tax Authorities start to accept it provided the risk of goods passes to the future buyer as of the moment goods arrive in Spain 2016 KPMG Abogados SL, a limited liability Spanish company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity All 15

16 Invoicing Legal requirements always to be met Importance as it can trigger: Formal penalties Non recovery of Input VAT Electronic invoice Any system (including PDF) insofar as it guarantees the authenticity of the origin and integrity of the content Rectifying invoices Special serial number Special content Always to be issued by original supplier (+ or -) 2016 KPMG Abogados SL, a limited liability Spanish company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity All 16

17 Penalty regime Underpayment of VAT debt 50% 150% Claiming an undue credit 50% Invoices issued which are not correct 1%-2% VAT Books which are not correct 1% Undeclared self assessed VAT 10% Late registration, late filing of returns (with no liability) KPMG Abogados SL, a limited liability Spanish company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity All 17

18 Spanish VAT breakfast Thinking beyond regulation and policy Javier Sanchez Indirect Tax Partner KPMG Abogados Maite Vilardebo Indirect Tax Partner KPMG Abogados Natalia Pastor Indirect Tax Partner KPMG Abogados

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