THE SPANISH TAX OFFICE CHECKS THE PAST OF NEW BUSINESSES

The Spanish Tax Office will promote prior review of reprehensive behaviour of new entities. The purpose of this review is to prevent future tax fraud and will be carried out within the campaign called “right from the start”, scheduled for the current year.

The Annual Control Plan affects measures of transparency of information and assistance to taxpayers in the compliance of tax obligations, particularly census obligations.  

Companies included in Immediate Information Supply that have a turnover below € 6,000,000 will receive a VAT draft declaration, which will make it easier for them to declare Corporate Tax.

Finally, Income Tax books will be compatible with VAT ones, thus reducing formal obligations of the taxpayer.

For further information: luisa@fernandezbaladron.com - http://www.fernandezbaladron.com

VAT SCHEME FOR INVESTMENT GOLD

1. 
   

 

Investment gold are gold bullion/sheets of milesimal fineness 995 [1] and gold coins of milesimal fineness 900, minted after 1800, that have been legal tender in the country of origin, sold at a price that does not exceed 80% of the market value of the gold contained in them. [2]

EXEMPTION OF TRANSACTIONS, WHEN THE OBJECT THEREOF IS INVESTMENT GOLD

In general terms, deliveries, EU acquisitions and imports of investment gold are exempt from VAT, but the taxable person may waive the exemption in some cases. Mediation services in these operations (on behalf of thirty parties) are also exempt. 

The exemption does not apply to EU acquisitions in which the provider of investment gold renounces the exemption. 

In case two possible exemptions were applicable (a gold investment and a EU acquisition one), investment gold one prevails. 

WAIVER OF EXEMPTION

Providers of investment gold may waive the exemption in the following cases:  

1. When they are regularly dedicated to produce investment gold or to transform non-investment gold in investment gold.
2. In deliveries of gold which has been transformed into investment gold. 
3. When the acquirer is a buisnessman or a professional.

The exemption can also be waived in case of mediation on behalf on thirty parties in exempt operations, provided that the acquirer is a businessman or a professional, and  when the provider had waived the exemption. 

The waiver must be done per operation, performed by the service provider and communicated in writing to the acquirer (prior or simultaneously to the acquisition). The acquirer also has to be informed in writing of his henceforth condition of taxpayer. 

DEDUCTIONS

In general terms, supported VAT is not deductible, since investment gold deliveries are exempt from VAT. 

Exceptionally, the following must be taken into account:

1.  Exempt deliveries of gold investment generate the right to deduct supported VAT quotes when done by businessmen or professionals who have produced or transformed that investment gold. 
2. Deliveries of exempt investment gold by businessmen who are not contemplated in a), generates the right to deduct.
3. Supported VAT corresponding to the internal or EU acquisition of that investment gold, when the supplier had waived the exemption.
4. Supported VAT corresponding to acquisition or import of investment gold, when it did not meet the pertinent requirements at the time of its acquisition or import.
5. Supported VAT corresponding to services of change of form, weight or milesimal fineness.

TAXABLE PERSON

In case of waive to the exemption by the provider, the taxable person of investment gold deliveries, is the recipient businessman or professional. 

FORMAL OBLIGATIONS

Businessmen and professionals who carry out operations of investment gold must keep copies of all invoices corresponding to these operations within 5 years (article 140 sexies of VAT Law)

Businessmen and professionals who carry out gold investment operations and other kind of operations must pertinently separate the operations corresponding to each scheme in their VAT books. 

---

[1] Provided that the weight accomplishes addendum 9th of VAT Law.

[2] These requirements are accomplished in all coins related by the EUOD before 1st of December each year.

For further information: http://www.fernandezbaladron.com 

VAT SPECIAL ARRANGEMENT FOR SECOND HAND GOODS, ANTIQUES, WORKS OF ART AND COLLECTOR’S ITEMS.

It is a voluntary VAT arrangement applicable to resellers, characterized by the form of calculation of the tax base.

It admits two modalities of tax base calculation: operation by operation and by global margin.

OPERATION BY OPERATION

In this case, taxpayers can choose, in each operation, between the special regime or the general one.

If they choose the special regime, they calculate the tax base as follows:

GLOBAL MARGIN           

If the taxpayer opts for this modality, the tax base is calculated through an inventory, as follows:

If the result is negative, the difference is added to the purchases oft he last period; if the result is positive, it is added to the sales of the last period.

Invoices documenting this kind of deliveries cannot separate the VAT quota, for this is NOT DEDUCTIBLE for the client. If the delivery is destinated to another EU country, the invoice must state that the operation has been taxed in accordance to articles 312 to 315 of the Directive 2006/112/EU.

For further information: http://www.fernandezbaladron.com 

MODIFICATION OF THE PAYMENT PERIOD OF THE BUSINESS TAX

 

The voluntary period of the Business Tax (I.A.E.) payment has been modified by a Resolution of the Spanish Tax Agency published yesterday (June 19^th of 2019) by the Spanish Official State Gazette. This modification affects both national and provincial rates for the financial year 2019.

The Business Tax applies to Corporations, Civil companies, entities without legal personality which constitute an economic unit (or a patrimony susceptible of taxation) and Non Residents with a permanent establishment in Spain engaged in an economic, professional or artistic activity within the Spanish territory (art. 35.4 of Law 58/2003, of December 17th, connected with art.82.1.c of Law of Local Treasuries, T.R.L.R.H.L.). Even though, taxpayers in the first 2 tax periods of the economic activity (82.1.b. of T.R.L.R.H.L.) or with a net turnover lower than 1.000.000€ are exempted.

Payment period

The payment in voluntary period for 2019 has been set from September 19^th to November 20^th of 2019, both dates being inclusive.

Form of payment

The Spanish Tax Agency shall send to the taxpayers the payment document, which has to be presented in any of the credit entities considered as “Collaborating” (entidades colaboradoras) for its payment.

In case the payment document of the Business Tax was not received, the taxpayer has to pick a duplicate up in the appropriate Tax Office for its fiscal domicile (Delegación de la A.E.A.T./ Administración de la A.E.A.T.)

 

For further information: http://www.fernandezbaladron.com

 

NEW MEASURES AGAINST EVICTION PROCEDURES

Since the beginning of the economic crisis, forcible evictions have been a constant in Spain. Particularly affected are people who have lost or are in risk of losing their job and have difficulties entering or re-entering the labour market.

Recently, the Royal Decree-Law Nr. 5/2017, of 17.03.2017, has approved the following two important measures to protect people considered to be in risk of social exclusion:

1.      Eviction procedures can be suspended to a maximum of 7 years. This term ends on 05.05.2020, since the deadline runs from the entry into force of Law 1/2013.

 

2.      In case the eviction has already occurred, they may request from the creditor the rental of the house for a maximum annual rental price of 3% of knockdown price. The deadline for requesting it is six months, from the entry into force of the RDL Nr. 5/2017.

The most significant group of people in situation of social exclusion are those who have suffered a significant alteration of their economic circumstances in the last 4 years. This alteration occurs when the result of dividing the mortgage burden into the rent had increased, at least, 1,5.

Other people in situation of social exclusion are the following:

1.      Large families

2.      Single parents

3.      Families with a minor

4.      Families in which a member has a disability greater than 33%

5.      Victims of gender violence

6.      Debtors over 60

7.      Families living with disabled, dependant or serious ill people.

The RDL Nr. 5/2017 has entered into force on March 18th of 2017.

 

 

http://www.fernandezbaladron.com

Luisa Fernández Baladrón is a registered lawyer at the I.C.A.I.B.

 

MASSIVE CLAIMS AGAINST TAX RETURNS ON GAINS IN VALUE OF URBAN LAND ARE EXPECTED

It is already a tradition of Spanish local finance legislation to assume that any property sale brings about a profit as a result. Such rules calculate taxes on the basis of cadastral value of the property, not on the actual profit obtained in the sales transaction.

 

Notwithstanding, it is a fact that, since the beginning of the economic crisis, houses are being sold at a lower price than they were bought.  In a judgement of February 16th 2017, the Spanish Constitutional Court has declared unconstitutional two articles of the Foral Law on Basque, since they do not take into account the actual capital gain obtained in sales operations. 

 

The mentioned articles are solely aplicable in the Gipuzkoan foral territory. However, these rules are exactly the same as the ones included in the Spanish General Local Finance Act.

 

As a result, some Spanish law firms and tax consultants are advising their clients to claim against Tax on Gains in Value of Urban Land returns of non prescribed years (the last four) as soons as possible, as there is a chance that the Spanish Constitutional Court gives judgement against the liquidations of this tax.  The advice tries to avoid the consequences of a possible temporary limitation of the Constitutional Court. Such a limitation is foreseeable, bearing in mind that a massive claim by taxpayers is also predictable.  

 

In this sense, it is advisable to submit an application for refund of undue income immediately after having paid the tax. 

 

Luisa Fernández Baladrón is a registered lawyer at the Il.lustre Col.legi d´Advocats of the Balearic Islands - http://www.fernandezbaladron.com