On 1 October 2019, the Ministry of Finance announced for public consultation two draft bills proposing various amendments to the Value Added Tax (VAT) Law and VAT Regulation. As a result, the draft bills are expected to become effective from 1 January 2020.
The draft bills mainly relate to the implementation of the EU temporary cross-border transaction simplifications; known as the four ‘Quick Fixes’ for VAT. So these are:
- Simplifying while harmonising rules regarding call-off stock;
- The VAT identification number of the customer becoming a substantive condition in order to exempt the intra-Community supply of goods;
- Simplification of chain transactions to enhance legal certainty by establishing uniform criteria; in addition to
- Harmonisation and simplification of the rules relating to the need to provide documentary evidence as proof of an intra-Community transport of goods for the purposes of applying the VAT exemption.
In Spain, the enactment of the four ‘Quick Fixes’ for VAT follows other EU Member States. This is in implementing the European Commission’s 2018 Directive. The new rules promote harmonisation and simplification of VAT rules for the taxation of trade between Member States. As a result, all Member States should enact this Directive into law by 1 January 2020.
Your business can prepare for the four VAT ‘Quick Fixes now. Watch our ‘Quick Guide to the Quick Fixes’ webinar here.
Spain will implement the four ‘Quick Fixes’ for VAT in January 2020. If any of the above changes affect your business, please contact one of our VAT experts to find out how we can assist you.