Binding Tax Ruling of March 31st, 2015, related to the new reverse charge cases in the supplies of consoles and video games
According to the Spanish tax reform, and in particular of VAT Act 37/1992, since last April 1st, 2015 came into force the new cases for the reverse charge in the supplies of goods defined as mobile phones, game consoles, laptops and digital tablets.
Through the binding tax ruling number V1037/2015, the Spanish General Tax Directorate (DGT) reminds the application of this rule for the supply of these goods, which must distinguish two cases:
a) The recipient is a taxable person and reseller: the reverse charge will apply regardless of the amount of delivery.
b) The recipient is a taxable person but without reseller status: the reverse charge will apply if the amount of delivery, documented in a single invoice, exceeds 10,000 Euro.
Regarding the first case, that is, business or professional reseller, recalls the DGT that it must prove that condition to the supplier by providing a certificate issued by the Spanish Tax Authorities for such purpose.
To do this, there must be a communication to the Spanish Tax Authorities about this condition, through a census declaration 036, which must be filed at the beginning of the reseller activity or during the month of November of the year preceding that to take effect.
Regarding the second case, i.e. those businesses or professionals who have no reseller status, the reverse charge will only apply for the supply of these goods when the delivery exceeds the amount of 10,000 Euro. This amount will be taken into account by invoice, unless there is evidence that the same transaction is documented in different bills, in which case the amount shall be considered for them all.
In any case, the recipient must communicate, previously or simultaneously, to the provider his business or professional status and, where appropriate, if acting as a reseller.
Finally, recall the DGT that these transactions must be documented with the issuance of an invoice with a specific series.
A copy of the binding request, in Spanish, is attached.
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