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Spain and the new e-commerce VAT regime. The hidden transposition

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Friday, 30 April 2021

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Since hidden in Chapter V, composed of a single article 10, pages 49860 to 49883, of "Royal Decree-Law 7/2021, of April 27, transposing the directives of the European Union in competition matters, prevention of money laundering, credit institutions, telecommunications, tax measures, prevention and repair of environmental damage, displacement of workers in the provision of transnational services and defense of consumers" (published in the Official Gazette of 28 April) 2021), it is perhaps of interest for the common mortals to know that the Spanish Goverment, using the formula of a Royal Law-Decree and so subject to the convalidation in due time by the Parliament , has carried out the transposition of Council Directive 2017/2455 and Council Directive 2019/1995 where the new VAT regime of the e-commerce is regulated. It is to be expected that the required changes in the Spanish VAT Ordinance and orders regulating the formal obligations involved will soon follow.

As foreseen in the Directives, the new VAT regime of the e-commerce will apply since the 1st July 2021.

It must be reminded that a partial transposition of Council Directive 2017/2455, in force since 1st January 2019, was already undergone by Budget Law for 2018 (referred to article 1 of said Directive which introduced a threshold for location rule purposes for the B2C supply of telecommunication, broadcasting and electronic services).

In subsequent entries we will elaborate further comments on this important issue.