Main changes to taxation introduced by Royal Decree 1075/2017, of 29 December (Official State Gazette on 30th of the month) in relation to VAT

MAIN CHANGES TO TAXATION INTRODUCED BY ROYAL DECREE 1075/2017, OF 29 DECEMBER (OFFICIAL STATE GAZETTE ON 30TH OF THE MONTH) IN RELATION TO VAT.


IMMEDIATE SUPPLY OF INFORMATION - SII


The implementation since 1 July last of the new record book keeping via the Tax Agency E-Office (Immediate Supply of Information -ISS), introduced by Royal Decree 596/2016 of 2 December, and mandatory for all VAT taxpayers whose tax period coincides with the calendar month, requires the regulatory modifications listed below, applicable from 1 January 2018, to facilitate its adoption and fulfil

  1. Royal Decree 1624/1992 of 29 December, which approves the Value Added Tax Regulations (RIVA): Article one RD 1075/2017.
    • Simplification authorisations (article 62.5 RIVA, article one. three RD 1075/2017):

      To facilitate the adoption of the new record book keeping system for certain collectives or sectors of activity requiring increased specialisation in relation to the application of the new tax management model, the Tax Agency may authorise in certain cases, subject to application from the interested parties, that not all entries or all information listed in tax record book need be stated, or that summary entries of invoices be permitted in conditions different to those generally required, when it is deemed that the commercial or administrative practices of the sector of activity in question justifies this.

    • Operations subject to the special scheme of second-hand goods, works of art, antiques and collectable items and the Regime for tax agencies (articles 63.3 and 64.4 VAT Regulations, article one. four Royal Decree 1075/2017):

      In the case of operations to which these special regimes apply, it will be compulsory to state in the record books the total amount of the operation instead of the gross tax base, tax rate and tax payable.

    • Summary entries of invoices issues(article 63.4 VAT Regulations, article one. four Royal Decree 1075/2017):

      Please note that in the general procedure for summary entries, invoices must have been issued on the same date, without prejudice to whether the accrual of the operations took place within a same calendar month.

    • Deadlines for electronic filing of registry entries (articles 69 bis and 70.1 of the VAT Regulations, article one, sections six and seven Royal Decree 1075/2017):

      A series of technical adjustments and specifications are made in relation to:

      • Operations not subject to tax in relation to which an invoice should have been issued: the filing deadline, which is the 15th of the month following the month in which the tax was accrued, referenced to the date on which the non-VATable transaction took place.
      • Rectified invoices issued and received: the information must be send within four calendar days of the issue date or the accounting entry, respectively.

        In the case of invoices issued, the deadline of the 15th of the month following the month of accrual does not apply, since the rectified invoice could have been issued after that date.

        In the case of invoices received, the deadline of the 15th of the month following the month in which the VAT on the invoice was deducted is not applicable, unless the rectification determines an increase in the amount of the initially deducted payments, in accordance with the provisions of article 114.Two.1 of the Value Added Tax Act.

      • Operations subject to the special cash-based regime: information corresponding to collections and payments must be carried out in a period of four calendar days from the collection or payment.
      • Registration amendments: registration errors must be rectified as soon as the taxpayer is aware of them, with the deadline for their notification ending on the 15th of the month following the end of the period in which the error is detected.
    • Option to keep record books electronically (article 71.4, removal of article 71.3.5 of the VAT Regulations, article one. eight RD 1075/2017):

      In order to facilitate the implementation of the new system, the quarterly payment period is maintained for taxpayers opting in voluntarily.

  2. Regulations through which invoicing obligations are regulated, approved by Royal Decree 1619/2012, of 30 November: Article five RD 1075/2017.

    From 1 January 2018 the following modifications are included:

    • Authorisation of the invoice rectification procedures(article 15.4 RD 1619/2012, article five. one RD 1075/2017):

      The Tax Agency's powers in relation to authorising invoice rectification procedures are extended, allowing authorisation of other procedures other than those set forth in Royal Decree 1619/2012 when this is justified due to sales or administrative practices in the sector of activity in question

    • Deadline for submitting rectified invoices(article 18 RD 1619/2012, article five. two RD 1075/2017):

      A technical adjustment is made to refer this term to the date of issuance of the rectified invoice instead of the operation's accrual date, so that the deadline for sending rectified invoices ends on the 15th of the month consecutive to the month in which the invoice was invoiced.

    • Special invoicing procedure for travel agencies(sections 1, 2, 3, 6 and 7 additional provision four RD 1619/2012, article five. three RD 1075/2017):

      Updates have been made to the invoicing regime for certain services rendered by travel agencies on behalf of other businesses or professionals, in order to include new services to which this special invoicing procedure will be applicable (carriage of passengers and luggage by means other than air travel, hotel accommodation, restaurant services, short-term vehicle leases, museum visits and travel insurance, inter alia).

  3. General Regulations for tax management and inspection procedures and development of standard regulations for tax application procedures, approved by RD 1065/2007 of 27 July (RGAT): article seven RD 1075/2017:
    • Authorisation of the invoice rectification procedures(additional provision one, section one.89 RD 1065/2007, article seven RD 1075/2017):

      From 1 January 2018 the effects of failure to resolve the application for authorisation of the invoice rectification procedure within the deadline are established, and can be deemed dismissed.


OTHER MODIFICATIONS

  1. Royal Decree 1624/1992 of 29 December, which approves the Value Added Tax Regulations (RIVA): Article one RD 1075/2017.
    • Regime of VAT refunds for travellers (article 9.1.2.B) VAT Regulation, article 1.1. RD 1075/2017):

      From 1 January 2017, a new VAT refund procedure for travellers is applied, by means of an electronic system of refunds introduced by Royal Decree 596/2016 of 2 December.

      This new system, which is voluntary, is based on replacing the procedure of presenting the invoice as proof of the departure of the goods from the EU with a new procedure entailing the digital stamping of the electronic document (DIVA form for VAT).

      After analysing the improvements to this procedure, it has been established as mandatory from 1 January 2019, including a series of technical adjustments:

      • In the electronic refund document, the traveller can include both their passport number and ID card number.
      • The DIVA form for VAT is filed electronically when the customs office of export is located within the territory of application of the tax.
    • Special Regime of the Group of Entities(article 61 of the VAT Regulation, article one. two RD 1075/2017):

      With effect from 1 January 2018, adaptations are made to the regime applicable to taxpayers subject to the Special VAT Regime for Groups of Entities under the new regulations contained in the General Tax Act 58/2003 of 17 December, regarding justified interruption and delays for reasons not attributable to the Tax Authorities in carrying out tax inspections, in accordance with the provisions of the General Regulations for tax management and inspection procedures affecting entities in corporate groups that are consolidated for Corporation Tax purposes, with the adaptations of the Special VAT Regime for Groups of Entities.

    • Import Tax deferral Regime article 74.1 of the VAT Regulations, sole temporary provision RD 1075/2017:

      From 1 January 2018 the following modifications are included:

      • Taxpayers declaring exclusively to the regional tax administration may opt to be taxed under the Import VAT deferral regime. In this case, they shall include the total tax paid by the Customs in a tax return - settlement to be filed with the Spanish Administration.
      • In general terms, taxpayers may opt to apply the Import VAT deferral regime during the month of November of the year before that in which it should take effect. Notwithstanding, taxpayers paying taxes exclusively to the Regional Tax Administrations may opt to apply this regime in 2018 (taxes paid by Customs corresponding to the period from February onward) until 15 January 2018.
  2. Royal Decree 3485/2000 of 29 December, on exclusions and exemptions in the regime applicable to diplomatic, consular and international bodies, and on modifications to the General Vehicle Regulations approved by Royal Decree 2822/1998 of 23 December: Article six RD 1075/2017.

    The main modifications introduced with effect from 1 January 2018 are as follows:

    • The exemption is extended to certain services, such as security, cleaning, consulting and translation, in order to cater for the needs of diplomatic representations, consular offices and international bodies, while also favouring reciprocal treatment for diplomatic and consular representations of Spain in other countries.
    • The exemption procedure is updated, referring to the standard exemption certificate for member States, for deliveries of goods and rendering of services within the framework of the diplomatic and consular agreements or destined for international organisations, as set forth in EU Regulation 282/2011 of the European Council of 15 March 2011, which establishes the application provisions of Directive 2006/112/EC regarding the standard VAT system