Do you have an e-commerce and sell products and services in several countries? If your answer is yes, then it is important for you to know that the modifications affecting the VAT Law came into force in July 2021, stating that you will now have to file the Form 369 and register in the One-Stop-Shop (OSS) by filling the Form 035. In this post we will tell you how to register in the OSS System, which Form is used to declare the VAT and how to fill it.
This modification to the VAT Law seeks to unify the limits for VAT taxation in the country of destination, to facilitate the payment of VAT through the One-Stop-Shop System, and to prevent tax fraud and evasion.
E-commerce has greatly increased in volume since 2020, mainly due to the Covid-19 pandemic and the confinement. As a result, a new regulation became necessary within the framework of the European Union, and, therefore, the VAT regulation affecting e-commerce has been amended.
How to register in the One Stop Shop System
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In order to be registered in the One Stop Shop System, it is necessary to file the Form 035. The filing is done electronically using a digital certificate. Once you have the digital certificate installed in your computer, go to the Tax Agency website, identify yourself with the certificate and select the corresponding regime (Union regime, External regime of the Union or Import regime). Next, select the registration, enter the company’s NIF and name, and complete the tax information, the bank details, the names of the countries in which you wish to register, and indicate whether you have carried out previous operations there or not. Finally, sign the form and submit it.
How do I file the VAT return under the One Stop Shop System? Form 369
In order to make the VAT declaration under the One Stop Shop Special Regime, it is necessary to file the Form 369 for declaration under the Special Scheme.
The Form 369 must be filed by:
– Those entrepreneurs or professionals who are not established in the European Union and who are registered in Spain in the External regime of the Union. The presentation of the form shall be done quarterly.
– Those entrepreneurs or professionals who are registered in Spain in the Union Regime. The filing is also quarterly.
– Entrepreneurs or professionals who are registered in the Import Regime, or the intermediaries acting on their own. The declaration shall be filed on a monthly basis.
How to fill in the Form 369?
Now that you know the deadlines for the filing of the Form 369, it is also important to know how to fill it, since it will depend on the regime in which the entrepreneur or professional is registered.
The most common regime is the Union regime. In order to make the presentation of this regime in the Form 369, one must include the following information:
- In the first section, the declarant’s personal information must be filled.
- In the second section, the liquidation period (year, quarter or month, depending on the declaration).
- The third section refers to the amount of money earned as a result of the provision of services, whereas the fourth section refers to the amounts earned due to the distance sales of goods to individuals located in other European Union countries.
- In the event that the activity is carried out from a country other than Spain, the information must be included in sections five and six.
- If the entrepreneur or professional needs to make corrections to previous years, he/she will do so in section seven.
In addition to the above, we must remember that companies selling products or services in European Union countries, whether or not they exceed the limit of 10,000 euros, must file the VAT Form 303 on a quarterly basis.
In conclusion, with the new changes introduced by the regulation that has been approved this year, the limits for the use of the One-Stop-Shop regime have changed, which have lowered from 35,000 euros to 10,000 euros, so that many companies can benefit from the simplification of the declaration and avoid having to register with the tax authorities in each country.
If your company sells products and services both inside and outside the European Union, it is essential that you have a Tax consultancy that knows in depth the taxation of this type of organizations and helps you reduce the tax burden, avoid mistakes and penalties.
