RDL 19/2020: main commercial and tax changes   At Bové Montero y Asociados we summarise and analyse the main tax and commercial changes adopted in Royal Decree-law 19/2020, of 26 May 2020. These include changes to: Deadlines for preparing and approving annual accounts Filing annual accounts with the Commercial Register Deferring tax liabilities Filing…

We highlight some of the latest tax measures introduced by the government, with effect from 23 April 2020:   1. Reduced 0% VAT rate for specific medical equipment. Zero-rate VAT will be applied to supplies of goods, imports, and intra-EU acquisitions of goods when the recipients are hospitals, clinics, public bodies, or private centres that…

  From 23 April 2020, electronic books, newspapers, and magazines will be taxed at 4% VAT.   Until now, the Spanish Tax Agency had repeatedly responded to queries by applying a higher VAT rate compared to goods supplied in printed format, only allowing the 4% VAT rate for books that had been transferred to reading…

International Tax – COVID-19: OECD Recommendations   The OECD has recently issued recommendations on the implications of the COVID-19 crisis on cross-border workers, permanent establishments and the place of effective management of companies. Although these recommendations should be interpreted as soft law (i.e. not legally binding), they can be used as guidance until the Tax…

  March 18 saw the publication in the Official State Gazette of Royal Decree-law 8/2020, of March 17, on urgent measures to tackle the economic and social effects of COVID-19, which is effective from the date of publication. We summarise the most relevant Tax measures of this Royal Decree-Law. Granting of powers for Customs clearance: The…

  Royal Decree-law 82020_COVID19_ENG March 18 saw the publication in the Official State Gazette of Royal Decree-law 8/2020, of March 17, on urgent measures to tackle the economic and social effects of COVID-19, which is effective from the date of publication. We summarise the most relevant measures of this Royal Decree-Law affecting the following areas:…

Last 14th March saw the publication of urgent tax measures to tackle the economic impact of COVID-19 in the Official State Gazette (link).   Specifically, the possibility of deferring tax payments has been granted to taxpayers (person or entity) whose turnover was under EUR 6.010.121,05 in 2019.   This deferral will be applicable to withholdings…

    5 February 2020 saw the publication, a little later than scheduled, of Royal Decree-law 3/2020, which transposes various EU Directives and Regulations onto Spanish legislation. Included among these are the VAT “Quick Fixes”, which we analysed in a tax update in October 2019. These changes will come into force on 1 March 2020….

    The Spanish Tax Agency has recently launched a special plan to check on taxpayers who repeatedly record tax losses on their Corporate Income Tax returns, which can be carried forward and offset in subsequent periods. The move was revealed in the 2020 General Tax Control Plan, which was recently published and notably includes…

    The Supreme Administrative Court of Sweden recently lodged a request for a preliminary ruling with the Court of Justice of the European Union (CJEU), on whether a branch and its principal establishment (that is, its headquarters in another jurisdiction), where the latter is part of a VAT group, are considered independent parties for…

    For foreign companies interested in operating in the EU, it is important to know when a structure is regarded as a fixed establishment (FE) for VAT purposes. In this respect, Advocate General Kokott’s preliminary findings in case C-547/18, on whether or not a subsidiary constitutes a FE, are particularly relevant. The events that…

    The place of supply of services for VAT purposes in an international context is an issue of great importance. In this case and generally, the place of VAT taxation for services supplied by one business to another (B2B) is the location of the customer’s headquarters. However, the regulation on effective use and enjoyment…

    For those employees who must travel abroad to carry out their job, the regulations of the Spanish Personal Income Tax (IRPF) include two different regimes that allow a part of their salary to be exempt from taxation in Spain. However, although the regime provided for in article 7p of the Personal Income Tax…

  As of January 1, 2020, the intra-Community VAT measures listed below will come into force. Spain will have to include these rules to its internal legislation before the aforementioned date. However, the current political situation will make it difficult to meet this deadline.   Consignment Stock (“Call-off stock”) “Call-off stock” refers to transactions in…

    For years, the Spanish tax authorities have imposed on companies established outside the EU that plan operating in Spain the obligation to appoint a tax representative with residence in Spain to represent them in their relations with the Tax Administration. This obligation implies, among others, an important extra cost for these companies compared…

  Finally, and after several years, the United States has ratified the Protocol amending the Treaty for the avoidance of double taxation signed with Spain. In general terms, the new Protocol considerably reduces taxation in the source country, incorporates measures to prevent tax evasion and expands coordination between the authorities of both States. Some of…

  Commission calls on Spain to abolish the obligation imposed on non-resident taxpayers to appoint a tax representative The Europrean Commission decided on 25th July 2019 to send a reasoned opinion to Spain for obliging non-resident taxpayers to appoint, in certain cases, a tax representative domiciled in Spain. This can result in extra costs and obstacles…

  We have recently become aware about the Opinion given by the European Commission to Spain in February 2017, in relation to the obligation of declaring assets and rights abroad (“Form 720”). This urges the Spanish Tax Authorities to abide by a two month fixed period, to take the necessary measures of adapting these internal regulations, which…