Spanish VAT compliance changes

Tue 23rd Sep 2014

A range of changes to the Spanish Value Added Tax regime have been prepared for 1 January 2015. These include:

  • Barter transactions must include agreement by both sides on the monetary value of the goods being exchanged to help the tax authorities determine the taxable base for VAT.
  • The Spanish Tour Operators Margin Scheme (TOMS) is being modified to bring it further into line with the EU VAT Directive.
  • The rules on VAT Groups are being harmonised with the EU VAT Directive, including a requirement that there must be at least 50% voting or capital control.
  • The VAT rules on the place of supply determination for supply and install will be modified so that if the install element is about 15% of the value of the contract then the place of supply will be Spain.
  • The new 2015 EU place of supply rules for B2C electronic, broadcast and telecoms services will be included in common with all other member states for the 1 January 2015 implementation.
  • The reduced VAT rates on a range of medical supplies and pharmaceuticals are to be increased