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Who will collect VAT in the collaborative economy?

| News | Tax

Belén Palao analyzes the practical aspects faced by companies with the entry into force of the new regime

The tax experts highlighted the difficulty of framing the collaborative economy within the traditional models of taxation and VAT. Fernando Matesanz, managing director of Spanish VAT Services Asesores, highlighted in the Madrid VAT Forum "the problems when we allude to a type of economy whose common denominator is that the interaction of the intervening subjects is carried out through digital means, generally platforms that put the parties in contact with each other". In this sense, he explained that it is a phenomenon that has evolved from the exchange of goods and services between friends or relatives to something "clearly entrepreneurial".

The change on VAT taxation that will enter into force before in the whole European territory, on July 1st, will be the IOSS (Import One Stop Shop) import regime, a special taxation regime for distance sales of goods imported from third countries or territories.

Belén Palao, partner of Andersen's Tax Department, analysed the theoretical aspects and practical problems faced by companies with the entry into force of the new regime, one of the main novelties introduced by Directive 2017/2455, of December 5th 2017, for certain e-commerce transactions.

Palao pointed out that this regime, which is optional and affects distance sales of goods imported from third territories or countries, involves the elimination of the exemption from paying VAT that currently applies to shipments valued at less than 22 euros. She also pointed out that another important change for the companies that take advantage of it is that the payment of VAT on sales of imported goods for private buyers will be made in a single Member State.

The expert also pointed out that non-EU suppliers will be obliged to appoint an intermediary established in the EU to assist them with the management of the special regime. She also pointed out that, in order to be eligible for this regime, the taxable person must register with the tax authorities of a single Member State, which will grant them a special number.

The full article can be read in El Economista

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