SALES EQUALIZATION SYSTEM

Sales equalization tax is a mandatory VAT system for retailers, that is to say, for B2C merchants that sell movable goods/ livestock which have not been processed/manufactured by them, to people or entities who do not have the condition of entrepreneurs  [1].

This tax system is intended to make it easier fort he retailer to account VAT:

1. When they buy, they must warn the supplier about their condition of retailer. 
2. VAT is declared by the supplier, together with the following percentage:
   
3. When selling, retailers charge VAT to their clients, but not the surcharge. 
4. They are not required to invoice for their sales (unless they are required by the customer) and they do not need to keep any VAT accounting records. 
5. They are not obliged to deliver a VAT declarations resulting from this quotes to the Spanish Tax Office (it is the supplier who does it), but for he following EXCEPTIONS:

a.       Intra community acquisitions

b.       Imports

c.       Acquisitions of goods with inversion of taxpayer

In these cases, retailers must deliver a FORM 309 to the Spanish Tax Office.

This system does not apply in the following operations:

• Sales to taxpayers oft he agriculture system 
• Intra-comunity deliveries 
• Imports

At the beginning of their operations, retailers have to liquidate (and pay) the amount resulting from applying VAT rates and surcharge percentages in force at the start date tot he value of their stocks. 

Consequently, when they cease in their activities, they can deduct the amount resulting from applying VAT and surcharge rates in force at the end date to the value of their stocks. 

To make these liquidation possible, retailers have to carry out an inventory with date oft he day immediately prior to their start or end. The result has to be delivered by the Spanish Tax Office within 15 days.

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[1] Retailers sell more than 80% to people or entities who do not have the condition of entrepreneurs (or to the Spanish Social Security).