Electronically supplied services, telecommunications, broadcasting services (Mini One Stop Shop Special Scheme)
The Spanish Tax Authorities have included in its web site a new page that brings together all the information about the changes to take effect from January 1st, 2015, regarding the rules of location of services supplied electronically, telecommunication services and broadcasting services.
It also includes information about the new Mini One Stop Shop Special Scheme.
The main novelty is the change on the place of supply of these services, in cases where the service recipient is a private individual or an entrepreneur not acting under the condition businessman or professional established in an EU Member State. In these cases, contrary to the criteria currently applied, the service shall be deemed given at the place where the recipient is domiciled or habitually resident.
In order to prevent companies who provide such services to private individuals located in different EU Member States, the obligation to register in each of these states, the new Mini One Stop Shop Special Scheme is created and, it will allow declaring these transactions through an electronic portal provided for that purpose, being the VAT quotas distributed to each EU Member State where the service is located.
This new regulation, coupled with the rise of e-commerce and new technologies that currently exists, is to put even greater emphasis on the need for taking into account with tax advisory firms specialized in indirect taxes that are aware of these developments and can apply the correct treatment to these services (correct identification of service, location, tax payer, Mini One Stop Shop Special Regime and special declaration for this scheme) to avoid tax risks that may result in the imposition of high penalties.