Spain – Payment of VAT in recepient’s country for intra-EU distance sales approved.

Spain implemented the legislation based on the eCommerce Directive which involves payment of VAT on intra-EU distance sales in the recipient’s country while previously VAT was paid in the seller’s member state. This will take effect as of July 1st 2021.

As a result all sellers of products or services will have to adapt their VAT to the country in which they wish to sell their products. The VAT for the recipients countries will be collected via the One Stop Shop mechanism.

 This new system so far only applied to specific electronic services but now it will become widespread. The entrepreneur does not need to register VAT in each Member State in which they wish to sell their product or services but only in the tax administration of the country in which the company is established. Entrepreneurs will present their VAT declarations to their respective authority and on the other end each member state shall be responsible for sending the proceeds to the recipient state.

 New obligations for digital platforms

 The platforms, portals and marketplaces that provide logistics and storage services for their clients will be collaborators in the management and collection of VAT from e-commerce. Especially when it comes to countries that are not part of the EU.

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