Since 1 January 2023, the Spanish Value Added Tax (VAT) law for the “use and enjoyment rule” which applied to certain services supplied to customers established outside the European Union (EU) has been amended, limiting the application of this rule.
Indeed, in Spain, the Annual Tax and Customs Control Plan 2023 (Plan Anual de Control Tributario y Aduanero in Spanish) was published on 27/02/2023, in which the Spanish tax administration will strengthen control in many areas, including:
- Census: During 2023, the census of non-commercial entities will be cleaned up in order to remove, where appropriate, those entities that do not meet the requirements to be effectively registered.
- Compliance with the presentation of reverse charge and informative declarations: During 2023, administrative actions will be carried out to verify that taxpayers comply with their obligation to submit information promptly and that the information is complete and correct. Data provided by taxpayers, such as unreported data, amounts not entered, etc. will be contrasted.
- VAT control: The national strategy to combat organised VAT fraud systems, with regard to fiscal year 2023, includes as a particular object of follow-up the preventive control measures of the Register of Intra-Community Operators, the increased control of the census of entities, the control of Value Added Tax fraud in intra-Community operations.
- Confirmation of the E-Billing project: The use of software with the capacity to send invoicing records to the Tax Agency in a mechanical and automated way will be encouraged.
- Verification of inclusion and permanence in REDEME (Regimen de Devolución Mensual – Monthly Reimbursement Scheme) intensified: Actions on compliance with the requirements for inclusion in the Intra-Community Register and the Monthly VAT Refund Register.
- The application of the tax on non-recyclable plastic packaging will be monitored: In the context of the tax on non-reusable plastic containers, compliance with the obligation to submit reverse charge by manufacturers and intra-Community purchasers of products subject to this tax will be checked.
- Collaboration between countries will be increased to ensure transparency of information.
ASD Group can assist you in these changes with the following services:
- Audit of your flows, compliance with your tax and information obligations;
- Management of the verification procedure of an intra-community VAT number (VIES);
- Management, support and monitoring of the Monthly VAT refund scheme (REDEME – Régimen de Devolución Mensual del IVA) in Spain;
- Management of the processing of your tax on non-recyclable plastic packaging in Spain.
Want to know more about these services? Contact our experts.
Source: Agencia Tributaria (in Spanish)
