Banco Sabadell organizes a conference on Intra-Community Traffic and VAT

Dissemination and information action on foreign trade

Banco Sabadell organizes an information session on the changes that have recently occurred, and those that will come into force from 2021, in relation to the rules and requirements that regulate VAT taxation of intra-community traffic of goods.

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During the session the impact of the BREXIT in the indirect taxation of transactions with the United Kingdom. 

 

They participated in the day Mr. Carlos Gómez Barrero, Partner responsible for the VAT, Customs and Indirect Taxes Department of GARRIGUES y Mrs. Arantxa De Luis, Counsel of the Tax Law practice in the Indirect Taxation Group (VAT and Special Taxes) and Customs of GARRIGUES. And both the opening and closing were carried out Ms. Fátima Rodríguez, Territorial International Business Director Bank Sabadell.

 

The main objective of the Treasury consists of establishing a definitive system of IVA from the Union for intra-community trade that implies greater control of fraud. The approval of these measures and their entry into force requires the unanimity of the Member States, so the work will require a great effort in dialogue.

 

The main changes will affect the exemption for deliveries to another Member State. The requirements for the exemption are that the operation is correctly reported in the recapitulative statement of intra-community operations. This is about converting these formal requirements into material requirements for the application of the exemption.

 

Means of proof of transport to another Member State: the mention of the justification of transport by any means of proof admitted by law is maintained, but the regulations add presumptions that can be used by the businessman who applies the exemption on the basis of specific test documents. Specifically, transportation will be deemed proven when the following documents are available:

 

When transportation is carried out by the seller will be precise: a letter or document RCM signed, a bill of lading, an air freight invoice or an invoice from the carrier of the goods, which have been issued by two different parties that are independent of each other, the seller and the purchaser.

 

When transportation is carried out by the buyer It will be necessary to have a written declaration that at least contains the date of issue, the name and address of the purchaser, the quantity and nature of the goods, the date and place of delivery of the goods, the identification number of the means of transport and the identification of the person accepting the goods on behalf of the purchaser.

 

Sales of consigned goods: the amendments affect sales of goods that are sent to another Member State by a seller not established in that Member State, destined for a warehouse that may be the customer's own, in order for the customer to acquire ownership at a later time , depending on your needs. These sales must refer in any case to goods destined for a client who is perfectly identified (tax identification number, name and surname, name or full company name) from the beginning.

 

Chain sales: These modifications refer to successive sales of the same good when there is a single transport from Spain to the ultimate customer, in another Member State. The new rules try to simplify the analysis and introduce clarity in the analysis of the location of the two taxable events.