Spain VAT compliance measures to tackle fraud

Mon 15th Oct 2012

Spain has introduced a number of changes to its VAT compliance regime to help reduce the risks of VAT fraud.  The changes will come into effect from 1 November 2012.

The key measures include:

  • New application of the reverse charge mechanism in the real estate industry.  Firstly on the sale of real estate, and secondly on the restoration of properties.
  • A new penalty regime for incorrect submissions on importation declarations.
  • Application of VAT on the sale of shares of real estate companies.
  • Easing of VAT reporting in the case of businesses in administration.  In particular eliminating the requirement to maintain pre and post administration VAT records.

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