Intra-Community acquisitions: When to pay VAT?
As stated in article 15 of the VAT Law, intra-community acquisitions consist of the acquisition of movable property dispatched or transported to the territory of application of the tax from another Member State of the European Union. In the case of operations with non-Community countries, these operations are called imports and exports.
As the academic definition is complicated to decipher, in this article we will see better what intra-community acquisitions are and how they relate to VAT.
What intra-Community acquisitions are subject to VAT?
Intra-Community acquisitions involving a taxable event in VAT, according to Article 13 of the VAT Law, are:
• Intra-Community acquisitions of goods for consideration by employers, professionals or legal persons not acting as such.
• Intra-Community acquisitions of new means of transport.
We are not talking about an intracommunity acquisition subject to tax if a person of Spanish nationality travels to Paris, buys a gift for 300 euros and come back to with him to Spain, since it is not about someone who acts as an entrepreneur.
Taxable amount for intra-Community acquisitions
The tax base is calculated with the same rules as the supply of goods and services, according to Article 82 of the Law.
Who must do it is the taxable person, that is to say, the acquirer of the goods who, necessarily, must have the condition of entrepreneur, professional or juridical person that does not act as such.
In this case, the accrual occurs when the assets are made available to the acquirer. The advance payment rule does not apply.
Obligations of intra-Community acquisitions
With Royal Decree 1493/2003 of 28 November, the obligation to issue invoices in intra-Community acquisitions disappeared, so that the document proving the operation will be the original invoice issued by the foreign supplier. This must be recorded in the invoice book received.
Specific information obligations
According to article 93 of the General Tax Law, natural and legal persons, public or private, must provide the Tax Administration with data, reports, background and evidence with tax implications that are related to the fulfillment of their obligations. To materialize, 349 form must be presented.
If, after reading the article, you think you’ve made an intra-community acquisition lately and need help, rely on GM Tax. We are an expert advice on tax issues and we are characterized by our proximity, so that we adapt to your case, whatever, to find the best solutions. Call us!